tracker or fixed ???!!!!

NICOLARICHARDS

My mort fixed rates ends soon and i am confused on whether to do fixed or tracker. i hav always done fixed in past so i know where i am with payments. But have been advised tracker may be better as rate better but with rises imminent in rates not sure.

Any advic would be appreciated??!!!!:(

ThanksNicola

getmore4less

What is your follow on rate?

NICOLARICHARDS

Hi i am on 4.19% fixed at present to stay with same company on variable would be 4.24%

Have been offered trakcer at 2.99% or fixed for 5 years at 4.99%
thanks

Peelerfart

Are they both fee free ?

NICOLARICHARDS

No both got fees but they have been added onto the mort amt
THe tracker is £593.81 over 18 yrs and the fixed is 698.70. Fixed for 5 years and tracker for 2yrs.
thanks

Peelerfart

of the two options you have quoted, in my opinion the fixed would be better as you've said
"hav always done fixed in past so i know where i am with payments".

The tracker being only two years means that the fees attached would need to paid again in two years time to get another deal.

Are you in a position to shop around i.e. have you a decent LTV ?

NICOLARICHARDS

hi yea im shopping around at the moment.
House is worth aprox 170 and mort need about 98100. not sure if this is good ltv or not.

thanks for your help

GuidoT

That is a good Loan to Value, better deals are available if you have a good LTV as lenders consider you a lesser risk as they have greater security.

At the end end of your current deal, does it revert to your current lenders Standard Variable Rate, this is usual. You will need to look at your mortage offer.

Because interest rates are low the SVRs of some lenders can be very good and such there is no point changing lenders.

NICOLARICHARDS

hi guidot yes it does got to svr at 4.24% thanks

silverfoxuk

NICOLARICHARDS wrote: »

hi yea im shopping around at the moment.
House is worth aprox 170 and mort need about 98100. not sure if this is good ltv or not.

thanks for your help

If your loan is £98k on a house valued at £170k, that's an LTV of approx 58%. If you are confident your property valuation is fairly accurate you should qualify for the 60% or lower LTV on HSBCs current 5 yr fix @ 3.99%.

https://mortgages.hsbc.co.uk/product/A004026003004026004004026005-5-year-fixed-special

£98k over 18 years @ 3.99% is approx £637 per month (for the next 5 years).

GuidoT

NICOLARICHARDS wrote: »

hi guidot yes it does got to svr at 4.24% thanks

That is borderline, you need to think carefully about whether you should move at all.

No doubt once interest rates go up invariably the SVR increases you should move, but I do not see that happening this year, well maybe half a point toward the end of this year.

When you consider any other deal ensure you factor in the fees into your calculations.