Lifetime Tracker??

nicholasgary278

Can anyone please advise me if this is a good option:-

I currently have 8 years left on my current mortgage and am moving house. I need to borrow £110k and will be increasing it to 25 years to keep the payments down.

I have had a few quotes from a "whole of the market" broker, including Fixed rates and trackers.

Barclays/Woolwich have got a Lifetime Tracker currently:-
1.97% (+ BOE base rate)
£199 arrangement Fee
Payments currently £492 per month

Is this a good option in the current market? And does it mean you are actually tied into it for the whole 25 year period or do they normally incur a massive penalty if you do get out?

Please help - thanks in anticipation

Gorgeous_George

This page (link) shows the Lifetime Tracker has a tie-in to 31 August 2013 although the arrangement fee is £999. You pay 1% of the balance repaid but you can switch and fix penalty free according to the same page.

I think it's a good deal as I don't see interest rates rising any time soon but it is you that needs to make the assessment.

GG

luciano

You can play with this mortgage here: mortgagelabs.co.uk/mortgage-calculator?p=110199&i=1.97&t=25. It's good to have a good understanding of how it's going to look and how might change.