Fee Free Lifetime Tracker deals?

nicholasgary278

Please help!!
Has anyone got any advice or had personal quotes on deals for a Lifetime Tracker, preferably with no fees attached?

I understand that if the BOE goes up a lot this would have a implications, however I have heard that there are some good ones out there that allow you to "get out" and "fix" after 2 years if the going gets tough without being penalised.

Any advice/deals will be gratefully received

jimjames

Have you tried any of the comparison sites like MOney Supermarket? We have a lifetime tracker with Nationwide but I believe others such as HSBC also offer them.

handytips

Hsbc are inundated with applications at the moment and are declining many applications. There is a product which is BBR+2.39% For life of mortgage, no fees, free legals and valuation, plus £300 cashback, you can also swap to a fixed rate should you want to without paying ERC's however there may be a fee on the fixed rate should you change.

Hoopie1

To confirm what Handytips said, see below.

https://forums.moneysavingexpert.com/discussion/3318118

You can get out of the HSBC deal fee-free AFAIK, which should enable you to switch to a fixed rate product should you choose to do so.

pinkteapot

HSBC ones are also good as in addition to no early redemption penalties if you switch, you can make unlimited overpayments on the lifetime tracker product. Overpayments are as easy as can be to make - just go onto internet banking and transfer money from your current/savings account to the mortgage account!

rising_from_the_ashes

First Direct do a few - from 2, 3 and lifetime.

nicholasgary278

thanks very much all - I've chickened out of the Lifetime tracker after loads of consideration and opted for a 5 year fixed with YBS
(totally opposite end of the spectrum I know lol)
Its 3.69% until 30/9/2016, £95 fee with £250 cashback on completion.
I was worried that the BofE would only have to go up by 1% for the Lifetime tracker to work out more expensive and even though none of us can predict wots going to happen I think the chances of it not going up by more than 1% over the next 5 years is pretty slim - do you agree?
Thanks very much again

Thrugelmir

nicholasgary278 wrote: »

I understand that if the BOE goes up a lot this would have a implications, however I have heard that there are some good ones out there that allow you to "get out" and "fix" after 2 years if the going gets tough without being penalised.

A rise in base will effect fixed rates as well. In more stable mortgage markets fixed rates are normally a slight premium to SVR. As the fix has a cost premium.

lightspeed

nicholasgary278 wrote: »

thanks very much all - I've chickened out of the Lifetime tracker after loads of consideration and opted for a 5 year fixed with YBS
(totally opposite end of the spectrum I know lol)
Its 3.69% until 30/9/2016, £95 fee with £250 cashback on completion.
I was worried that the BofE would only have to go up by 1% for the Lifetime tracker to work out more expensive and even though none of us can predict wots going to happen I think the chances of it not going up by more than 1% over the next 5 years is pretty slim - do you agree?
Thanks very much again

Difficult to say...my guess is that there wont be much in it between those who take trakers and those who take 5 year fix's when compared over the next 5 years.

You have to ask: why are 5 year fix's becoming more competitive? My thoughts are that lenders don not see the BOEBR rising anytime soon and if they do, not by much. Lenders are in it to make money and their rates reflect the market projections. This might mean trackers are still the best short to medium term option.

A tracker is likely to save you money in the short term which you may end up paying out anyway medium to long term. The main benefit with trackers is that they increase my ability to reduce my mortgage faster, for now anyway

However, fixing removes that gamble.

handytips

75% of people fix their mortgage, that is a fact. I can advise until i am blue in the face that a tracker is the best option, however if the client wants to fix and i have advised best as i can, then i will source the fixed rate. People prefer the stability of a monthly payment that will not change over a period of time. Personally i think a life time tracker deal where you can fix any time you want is a great deal, but each to their own.

xcapade

handytips wrote: »

75% of people fix their mortgage, that is a fact. I can advise until i am blue in the face that a tracker is the best option, however if the client wants to fix and i have advised best as i can, then i will source the fixed rate. People prefer the stability of a monthly payment that will not change over a period of time. Personally i think a life time tracker deal where you can fix any time you want is a great deal, but each to their own.

Hi Handytip. Thank you for the above response. I would just like to know your opinion on Fixed vs Tracker mortgage. You say "Tracker" is the best option. Would it be possible for you to list the pros and cons of both mortgage rates. Would be good to see a comparison from an independent point of view.:)