Which Mortgage for me

natman

Thanks for reading - ok here goes.

My house is worth around £210,000
I have a mortgage that is for £88,000

My mortgage is broke up into 2 parts -
1 - 0.5 ABOVE BASE RATE LIFETIME TRACKER, the rate is currently 1% on £24,000
2 Fix - coming to an end in a few months of 5.09% on £64,000
I am with Britannia Building society & their standard variable is 4.24%

So If i leave things as they are at the end of my fix
I will go onto SVR 4.24% for £88,000 and stay on base rate tracker at 1% for £24,000
A TOTAL COST PER MONTH ON 20 YEARS REMAINING WOULD BE -

£115 +400 = £515 a month

A COMPETITIVE fix out there for the whole money for 5 years is about 4.4% which works out at £558

A competitive lifetime tracker out there tracks at about 2% above base meaning monthly costs are - £459

The obvious negative issue is that, if I do remortgage away from Britannia i will lose the Britannia Base rate tracker at 0.5%, which is a cosy product.

What are people thoughts out there.... Hope you can help. I know I have a good loan to value rate, and we have never missed payments etc, and in theory can get a mortgage for around £170,000, show we are not wanting to push ourselves financially.

natman

Hello,

just wanted to bump this up the page, as I posted a few weeks back and had no responses.
Any thoughts would be great.

Thank you.
n

Thrugelmir

Stick with the Britannia. As the tracker rate you'll never get again. Don't give this up until really have to.

If you are considering moving or even not. My comment would be the same. Make overpayments on the other part of the mortgage to reduce the balance and save yourselves interest.

Don't be fixated by headline interest rates. To pay less interest borrow less. Money makes money.

natman

I KNOW the Britannia is a great product and don't really want to lose it. I suppose what's best is-

24k on 1% plus 64k on 4.74% or

88k on base tracker of around 2.8%.
You are right in saying that if my original tracker goes I woot ever get it back.

Any more thougts please.?

jimjames

Keep the tracker whatever.

Remortgage the remainder for whatever deal you can get that suits you best. Personally I'm not a fan of fixed rates.