Low Tracker...stick with??

dearyn

Hi, we have about 66k, at 0.18% above BofE rate, over 17yr term remaining. Currently overpaying about £300...I know this sounds daft, but, am I right to just try and pump what I can afford into this at the moment ?....and should I just to stick with this deal as it is for the full term of the mortgage ?.............I can't really see the wood for the proverbial at the mo'...I'd love a little guidance if you'd be so kind...cheers:think:

opinions4u

Stick with it for now. Markets can change and as rates rise your deal may become less competitive. So keep an eye on what else is available.

(Consider paying overpayments in to a savings account. You should be able to get 2% net interest which means you can earn more than you're being charged. But be disciplined and don't use the savings for other reasons).

dearyn

Thanks....what kinda' bank rate rise should be ringing alarm bells for me to start looking at the fixes that are around at the moment...cheers

Rov

The kind of rate you have will never be available ever again, you are fantastically lucky to have it!

The clever way to handle it is to not pay anything off the mortgage but use this loan to make a higher return than 0.18% above BOE from other investments, you are then basically getting free money and becoming more wealthy. Its risky though and you need to be on top of things this way!

The sensible thing to do is exactly what you are doing, which is to pay as much of it off as possible while you can afford to do so.

It all depends what you can afford to pay, you need to decide that as £'s, calculate that as a % figure and look at the fixed rates available. We're unlikely to get a BOE above 3% in the next couple of years (you never know though!) which would mean you'd probably be better off on your rate for a while.

Voyager2002

I agree with the advice given above. Actually, I doubt whether a deal as good as the one you are enjoying wil ever again be available, so don't be tempted to switch.

I have a similar mortgage product (taken out in 2004) and at the moment I am paying less than fifty pounds a month in interest! Obviously, I am putting aside money to pay off the mortgage eventually. My choice is to make some use of stock-market based investments (mutual funds): doing this does involve some degree of risk, but the probability of a reasonable amount of money remaining for me after the debt has been repaid.

getmore4less

The chances are you will never have to change again this is the dogs danglies in the mortgage world,


Save the money don't overpay untill savings rates get below the mortgage rate which is probably going to be never.

Look at ISAs and monthly savers.

Once you have enough savings to pay of the mortgage stick that to one side in your mind and pretend to be mortgage free, DON'T SPEND IT.

hillcats

Stick with it...
We also have a lifetime tracker (detailed below) that we will NOT be changing.
As already mentioned I very much doubt if trackers as good as we hold will come round for a while.

luckyfool

They may come back at margins like this or close to it, but you can guarantee that once they get below 1% over base rate these new lifetime tracker deals will always have a collar in future (i.e. not tracking base rate below 1 or 2% to protect the lender from a future situation like they have just now).

fraser

that is a beauty of a mortgage product - wish I could have it today, alas moving house forced us to move off our product as we sold and rented for a while

motch

dearyn wrote: »

Hi, we have about 66k, at 0.18% above BofE rate, over 17yr term remaining. Currently overpaying about £300...I know this sounds daft, but, am I right to just try and pump what I can afford into this at the moment ?....and should I just to stick with this deal as it is for the full term of the mortgage ?.............I can't really see the wood for the proverbial at the mo'...I'd love a little guidance if you'd be so kind...cheers:think:

The holy grail of mortgages. The interest on that is only about £37 a month! (at the moment)

dearyn

woah!...what can I say guys, this has been so fantastically reassuring thanks.
At the very least I can rest assured we'll stay put with the Woolwich, i guess now its getting my head around the investment angle until end of term.......so reduce payments to the basic £350 odd (or do i revert to an interst only ??) and then pump any overpayments into a fixed rate savings account or ISA- and pay off in 17 years at the end of term ??....have i got the right giste ? Once again Cheers