Lifetime tracker - isn't that the best way?

getmore4less

kurlakid wrote: »

The follow on rate is Barclays Bank Base rate + 1.49

Actaully I don;t know what Barclays Bank Base rate means. Is it atracker or SVR or is it Barclays personal tracker?

BBBR is currently Bank base rate(0.5%) but they can change it but there will be alot of angry people.

Some have records that their BBBR is base rate so it should track.

+1.49% is probably worth hanging onto.

justme111

kurlakid wrote: »

Hello,


Thanks
Sam

I think you are right. As fixed rate offers additional benefit of security they will always be more expensive in the long run to pay for that security, and the one can not overpay, and has lock-in period.So if the one can take rising rates without going bankrupt it will be cheaper to go for a tracker.
I considered HSBC 1,99% myself but thought the strech to get to 30% LTV would be too harsh and stressfull so settled with First Direct 2,29% above after extensive research.

kurlakid

Thanks for your responses.
It did put a broader perspective on things for me.

I have concluded that there is no sense in paying ERC in a hope that BOE rate will stay below 2.0 in next 24 months.

BBBR+1.49 at the end of fixed term (Early 2013) may prove to be a good tracker depending on how the BOE rate does in next 24 months, so I would wait and watch as you advised. If it is not then I could always switch wihtout having to pay ERC.

Will focus on bringing down my LTV to below 60% until then so that if I have to switch, I could get the best Lifetime tracker rate.

Thanks alot for your honest & helpful replies
Sam

dimbo61

sit tight thats a great follow on rate and then overpay as much as possible