Fixed or Tracker

Thrugelmir

EllieK wrote: »

My dad is now suggesting get the tracker for two years and overpay the £80pcm, is that a valid suggestion?

My interest in the tracker was that as I get paid a low wage now, it would give me some leeway, and as the interest rates increase so should my wages, although hopefully the interest rates won't increase too dramatically!

With a £945 fee I would shop around some more.

How much are youintending to borrow?

originalmiscellany

For what it's worth, I'd be fixing on a 5 year deal if I had the choice, as the future is uncertain and I think going to be quite shaky for the next 3... House prices fluctuating and interest rates steadily increasing.
As long as you can afford the mortgage and you still have a life but are saving and overpaying, go for it!

EllieK_2

Thanks everyone.

I have 30k deposit, so, looking to keep my my LTV at 75% I am looking around the £120k mark for a house. Loan would be £90k.

Not much on the market at the mo though so waiting it out and trying to decide on a mortgage in the meantime...

whatyadoinsucka

what about a lifetime tracker hsbc 2.49% plus BR = 2.99% (fee currently £425) on your details for a C&R 25 yr time
unlimited overpayments / lumps sums, no get out fees..
(although you need to be an advance customer £13 a month for 12 months includes breakdown/travel insurance etc)

keep on checking these rates as now and again the rates drop 0.5% and the fee goes to £100, you've got a good desposit. so you should look at the pickier lenders who aren't owned by the government

ray123

whatyadoinsucka wrote: »

what about a lifetime tracker hsbc 2.49% plus BR = 2.99% (fee currently £425) on your details for a C&R 25 yr time
unlimited overpayments / lumps sums, no get out fees..
(although you need to be an advance customer £13 a month for 12 months includes breakdown/travel insurance etc)

This is an excellent rate.

Mortgages for HSBC are now fee free, however, I assume that legal fees are still payable.
Also, the rate quoted above by whatyadoinsucka is available without the requirement of opening an advance customer account.

If you are able to increase your deposit to 30%, the tracker rate for HSBC is 2.19% plus BR = 2.69%.

Personally, I would opt for a 5 year fixed.

dorset_nurse

I have had a tracker for 14 months and the rate hasn't moved at all. I pay much less than I would have paid if I had decided on a fixed rate; even taking into account the fees.
Nationwide allow you to switch to a fixed rate mortgage at any time if the rates start rising and you get worried. I'm sure other companies will allow you to do this.