New Mortgauge!!

Andysstuff

I have just sold my house and im looking at ending my existing nationwide fized 5.64% deal with 2 years remaining ( ERC £1980 )

SO im thinking of paying the ERC and starting a new mortgauge but what to do next is tricky!!!

I have a deposite of £66000 and i am looking at a house for £181500 thus giving me a mortgauge of £115000 over 25 years....

Should i Fix again for 5 years @ 4.1% with an SMR currently at 3.99 £630 pm) or go with a tracker at 2.8 / 2.9% (approx £540 pm)

But personaly i dont think i will make over payment so that will not be a factor in my decision.

If i went with a tracker with option to fix at anytime and the base rate went up say 0.5 / 1.0% what do you think will happen to the good deals on fixed rates do you think they will take a big jump and become more expensive to get???? or become rarer?

Any ideas (bare in mind im self employed to) thanks for you ideas....

opinions4u

1. Why do you need to borrow over 25 years if you've already had a mortgage for a period of time? Consider a shorter term.

2. Take a look at some of the 5 year fixed deals on the market. HSBC, Co-op, First Direct etc. Longer term fixed payments may be appropriate for your circumstances.

www.moneyfacts.co.uk will help you compare other lenders.

Andysstuff

I intend to pay 0ver 25 years again to reduce the payments but after the first 4/5 year when the mortgauge is due again i will reduce the years then depending on what the interest rate is, also i am 28 so i think it will work out about right 25 years..

So do you not think trackers would benifit over the next five years ???

Andysstuff

Thankyou for your help i have just found a perfect deal with first direct, LTV of 65% (im at 63%)

5 year fixed @ 3.89% with a SVR 3.69% £99 booking fee NO arrangment fee, unlimited lump sum and over payments £600 pm