2y trackers tell me where wrong

chris098

Hi,

Background
I am a First Time Buyer. Not a mortgage expert. Got my offer accepted, Need to progerss fast as seller wants it fast and I wouldn't want to loose it. It's 250k and I have 25%. Have acc at Barclays since long, already discussed things so this would be the fastest.

My choices
a) Woolwich 2y tracker @ 2.68% reverting to 2.78% Fee £999
b) YBS 2y tracker @ 2.29% reverting to 4.99% Fee £995
c) ING 2y tracker @ 2.39% reverting to 3.5% Fee £445 plus cashback

Differences
Wool is the fastest in terms of process, will lose £1.6 in comparison to YBS and £2.2k in ING case. On the other hand Don't have to be scared for reverting option as it changes slightly. And in other cases would have to think about new products straight away.

Why Tracker and Direct
Yes, I do understand Base rate changes, still think tracker is more beneficial to me than fixed.
Direct because all the 'advisors' I talked to suggested worse deals then those above...

Questions
Can anyone outline how long YBS or ING would take?
I am thinking Woolwich now as slight cash advantage can result in sale delayed plus in lot's of head scratching after 18 months through the deal.

Where am I wrong in my thinking?, will accept constructive critique.

Regards,
Chris

getmore4less

Wool->YBS

£188k paying both at £422(largest I/O) difference after 2 years is £3.5k

repayment 25y @ £862 difference at 2 years £1500


I am a fan of low follow on rates,

Cheaper option to just keep on tracking so no new fees.

Better risk coverage , change in circumstances means can't remortgage less of an issue.


Been reports of Barclays/Woolwich being slow,

if you moved onto follow on for 5 months same payment

Wool £177149 @ 2.67% £174,880.49
YBS £175654 @ 4.99% £174,990.65

So you recover the losses in < 5 months.

I think you can eliminate the YBS option, Wool is better IMO.

ING would take longer being cheaper to start with and lower follow on how much cash back?.




Checked and suprised that First direct are no longer competative.

chris098

I think cannot afford delay and have to have it under time control.
You've underlined my choices in this particular case.

Thanks for replying,
Chris

dimbo61

You are looking at buying a £250K property and you have a 10% deposit !
If you use "whatsthecsot" you can work out how much you will have paid off over 2 years! now if this brings your LTV below 85% then great better deals when you come to remortgage.
Why only a 2 year deal when you have a mortgage for 25 years and maybe even longer.
Rates have never been this low think long term