Mortgages I do not understand...

heranaway

YBS are offering a mortgage at 3.99% fixed for 3 years at 15% LTV, it says that after the fixed rate it refers to 4.99 SVR. I think I know what that means...that my rate 3.99% will go upto 4.99% is that right? If I wanted to go to another lender after 3 years, can this be done and how much would I get charged?

My other question is, fixed rate for 3 years at 3.99% or should I go for a tracker rate which is at 3.49% for 3 years?

But I still don't get this whole base rate business...is 3.49 the total rate?

http://www.ybs.co.uk/mortgages/current_products/index.html?customerType=ftb&mortgageType=boe&depositMin=15&x=28&y=7#ftb

Could someone please explain to me as Im quite confused.

Thanks in advance

CloudCuckooLand

You are correct, it will go up at the end of 3 years.

You can switch at the end of 3 years. What that might cost will depend on the range of fees and products around at that time...my crystal ball can't see that far ahead!

A tracker, as the name implies, tracks the Bank of England base rate. So, if in 18 months time that has risen to 3%, you would be paying 5.99%.

As the webpage shows, it tracks BoE +2.99%, so as BoE is currently 0.5%, that makes 3.49% in total as at today.

Whether you should pick tracker or fixed, depends on your attitude to risk, preference for stability, certainty of outgoings, etc.

It is the whole rate, but not the whole cost. Fees, survey etc, for this one, and for any future re-mortgage in 3 years...