Mortgage offer any good ?

thegreathansoni

Hello,

My current 5 year deal with Woolwich Barclays is coming to an end 4.99 fixed. The policy will default onto a lifetime tracker base rate + 0.95%, so it's starting at 1.45% variable. I have about 67k left over 14 years.

I think this appears quite good at the momment although interest rates might head upwards and I might regret taking one of the fixed rate offers they have made to me:

2 yrs fixed 3.29% no fee
4 yr fixed 3.79 % no fee

Thanks for any views on whether these are reasonable offers.

hcb42

i think they are decent offers, but payments will be higher than on the variable, so depends on your attitude to risk, I think I would be tempted to overpay while you can (even at the 4.99% equivalent payment) and stay on the variable..and reduce the term, but it's probably down to personal choice given the loan isnt so big..

dimbo61

That 4 year deal looks very good and if you kept your payment static you would be overpaying every month

ryan86uk

That four year deal is very good! I would go for that! Unless you are planning to overpay more than the standard 10% limit each year... sign on that dotted line!

OP2011

Try to think what you will do after the fixed rate period.

I would be very surprised if your lender will still offer you a 0.95% tracker after the 4 years as a follow on rate.

After 4 years you will most probably not get another fixed or variable at 0.95% over base elsewhere either.

If you take the fix and the base rate does rise way above 3.79% you may save for a couple of years but have a good think about what fixed deals you will be able to get after that fixed product finishes if base rates are over 5%.

Its about whether knowing what you are paying for the next four years is more important to you than the 10 years after.

My guess would be to stay with current lender and take tracker, set payments to at least 4%, if you can afford it 5%.

Some may say save until rates balance with savings but this is for the strict

Good Luck.

getmore4less

Barclays updated their deals yesterday.
those 2 are not on the list.

http://www.barclays.co.uk/Mortgage/Ourmortgagerates/P1242562266844

4 year looks very good.

Barclays trackers best rate now is base+2.5% and the followons on these deals are likely to be base+2.99%

That base+0.95% will look very good.

Could try negotiating to keep the old followon rate.