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Mortgage Question

Hi

My Fixed rate is coming to an end at the end of the month, I have looked (and had ifa's look round)around and the best deals i can get are with my current lender 'hsbc'. I have been offered the fee free tracker at 3.99% (which tracks boe plus 3.49%), I can over pay and exit this at anytime, without charge. However, if i go on to the SVR, the fees are 3.94%.

Im not sure what the differences between the two are? I'm also not sure what to do, stick on the svr and wait for a better option to come along, or move onto the tracker and still look for the better option?

Comments

  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    I'd stick on the SVR - can't see the benefit of being on a tracker. There's always the possibility that the gap between SVR and base rate narrows as rates increase, whereas with the tracker you're guaranteed to always be 3.49% above the base rate
  • Is there not a risk of the SVR rising without the BOE going up?
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    Is there not a risk of the SVR rising without the BOE going up?

    I'm no expert but I can't see it happening when it is already 3.44% above base rate. If you're concerned about rates rising then see how much a fix would be.
  • Cheers. As for fix, the are all 5-6% for 2yrs, anything longer than this are 6%+
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