Have we picked the wrong option..

gabyjane

Guessing 'how longs a bit of string' and 'if i had a crystal ball' will be the replies but worrying after reading some posts although too late but wanted opinions!

We are until the end of August in a fixed deal mortgage with leeds at £410 per month (S/O house)..the IFA came round and gave us opinions and has always been fab and helpful etc and gave us 2 fixed and one tracker..i am a worrier and said no straight away to the tracker as like to know where we are with payments etc BUT the 2 fixed were either 2 or 5 years but both had hefty fees (1k+)..after talking for ages we decided on the tracker as IF the interest rates increase (reason for me worrying) we can jump out and go back onto fixed..we will get an update each month from the IFA who will keep an eye on it for us and let us know if he thinks we should move it etc. The mortgage due to equity is dropping to £309 a month on this deal..was slightly less with the others but the fee again.

The fees to do this on the new one are unknown but apparantly won't be any higher than the fixed one. Has anyone else ever done this and have any ideas what the fees are likely to be and whether we should have taken the fixed?

Thanks

Thrugelmir

Getting late so a few thoughts.

So why not maintain your mortgage repayments? Take the tracker and overpay by £100 a month?

What SVR do you move onto when the fixed rate term ends?

What period is the tracker for and what are the fees?

Don't feel rushed into making a snap decision. Plenty of good advice available on this board.

gabyjane

Thrugelmir wrote: »

Getting late so a few thoughts.

So why not maintain your mortgage repayments? Take the tracker and overpay by £100 a month?

What SVR do you move onto when the fixed rate term ends?

What period is the tracker for and what are the fees?

Don't feel rushed into making a snap decision. Plenty of good advice available on this board.

Hi thanks.

Forgot to point out the crucial part which is the part where we have signed up to the tracker a few weeks back.

The plan is to overpay it..this was always hopefully the plan but we didn't expect it to drop so much so were pleasantly suprised. At the moment we currently pay £410 so will overpay by at least £100 as you said but hope it to be about £150 a month more.

The SVR is only about .5 of what it was less so not a huge difference.

The tracker is for 2 years and a £99 fee which we have already paid for, again we can jump out of this at any point but will have to pay a fee and that was the gamble really as we don't know what the fee will be.

Luckily we have a small mortgage so it i hope won't make a huge dent if it goes up but unsure.

Thanks for your help. x