Advice please regarding Mortgage types and market trends?

Burridge60

getmore4less wrote: »

So your tracker
Basically you win a bit, might lose a bit if rates rise and them might save again for life( fees for a start)

And if you overpay the tracker mortgage as if you had taken the fixed rate (or stick the savings in the Bank) you will actually have something to show for the savings and not just a slightly cheaper mortgage cost each month.

VT82

Most places won't distinguish between an LTV of anything under 60%. Under this, it is in the bottom tier for credit risk - i.e. they should get all their money back from a reposession and forced sale, without having to write any of it off. I'm guessing in terms of having to hold capital against their mortgage assets, 60% LTV is also the cut off for having to hold the lowest % of capital against it.

Regarding 2 yr tracker versus term tracker - as has been said, given the same rate or thereabouts, a term tracker is infinitely preferable. No early repayment charges should you need to redeem for whatever reason, no reversion onto the lender's SVR after two years and being at the mercy of their need to widen their margin, and no need to pay another fee in 2 year's time to stay on a competitive rate. That's why most lenders now have all of their mortgages reverting to SVRs instead of trackers, and why the ones which offered cheap tracker reversions in the past are royally kicking themselves (if they are still around that is!).

THoward

Thanks guys, been on the phone to HSBC, going through most of the details, need to finalise this tomorrow, but before this I need to see if there are any better term tracker deals out there.... a sensible search can save £'s!! thanks

Thrugelmir

THoward wrote: »

Thanks guys, been on the phone to HSBC, going through most of the details, need to finalise this tomorrow, but before this I need to see if there are any better term tracker deals out there.... a sensible search can save £'s!! thanks

If you do, come back and tell us all.

ellives

bump!

what's the latest Thoward?

THoward

Well, I've applied for the HSBC mortgage - Term tracker at 2.29% (1.79% above BOE rate).

Couldn't find anything to match it once I'd decided that tracker was the way to go and decided that lifetime made sense due to the move to the SVR (and the subsequent charges) should the shorter term be taken.

Thanks to all for the advice on here.

Tim