Tracker ending (Halifax), go to variable rate or new deal?

Lady_K

My endowment mortgage will have just over 3 years left when the present tracker deal ends on 31st July. I spoke to halifax mortgages on the phone as you cannot see existing customer offers online, they say each customer gets different offers.

The tracker I am on now is 1.4% and I know I wont get anywhere near that but I'm not sure if its better to stay with variable rate rather than go into a new deal, the deals were not very good at all really.

Firstly I'm a bit confused as to why halifax say that the variable rate is 3.5% but all customers go onto some kind of homecare (if i have the word right) so it will actually be 3.99%.
The thing about the variable rate is I do want to overpay because there will be quite a big shortfall on the endowment (standard life) and there is no limit to overpayments on the variable but on the other ones you can only overpay by 10% per year which I don't think will cover the estimated shortfall. I do not want to change mortgage lenders

Halifax offered me
3 yr fix 4.89% (no fee)

2 yr fix 2.79% (999 fee)

2 yr tracker 3.39% (999 fee)

3 yr tracker 3.39% (no fee)

dimbo61

You dont give the outstanding mortgage amount so no one can work out which is the best deal for you!
You mortgage balance might only be £4000 so paying a fee of £999 would be madness.
As you already point out you dont want to move lender and have total flexability with the SVR in that you can overpay as mush as you want each month.
Now the 3 year tracker has no fee and is less than you will be paying but please check what rate your current deal will revert to ( not 2.5% is it?) and check what overpayments are allowed.

Lady_K

My current tracker was for 6 yrs until 31st July 2011 and I understand it will automatically go back to standard variable rate unless I choose another deal, this deal has no limits to overpayments. They told me today that on 1st Aug my balance will be just under 24k. They said if I go with the variable rate there will be no limit to overpayments but all the others only allow 10% overpayments

dimbo61

well only 3 things to point out ( 1 should have typed MUCH not mush!)
2 check what is the variable rate and make sure its more than the 3.39% tracker deal
3 you only have three years left on your mortgage so you could ask to increase the monthly payment ( is it interest only and could you change it to repayment)
that way you would have the mortgage cleared in 3 years and the endowment money would be a savings pot for retirement/world cruise!

Lady_K

I just rang them back and they said it reverts to 3.5% standard variable rate but is subject to change.

I asked again about the 3.5% svr and why they told me it was actually 3.99% I think its to do with if I go onto svr directly after this one I think it will be 3.5% but if I start another deal and then go onto svr it will go to 3.99% homeowner mortgage.

The tracker is 2.89% on top of br so its 3.39% for 3 yrs

Both of them could change I know with any br rises unless I go for the fixed one. I dont really want to change to repayment.

On the 10% overpayment ones is it 10% of the balance or 10% of original loan?

Also they said these deals change daily, do you think theres a change I might get a better deal offered if I leave it and do nothing for a while without reserving a deal?

dimbo61

Its normally 10% of the outstanding balance from the start of the year!
Again you only have a mortgage of £24K and three years left on the term plus you have an endowment which has some value?
The difference between 3.5% and 3.39% on £24K is not much and you have flexability when on the SVR to overpay whatever you want.
Dont think rates will get any lower