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2 year, 5 year 05 7 year?!

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  • dcc251
    dcc251 Posts: 20 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Is there a large arrangement fee on the 7 year fix? Also are you likely to want to move within 7 years? I will look at this myself.
    Thank you..

    All of the mortgages are portable.

    No fees above £195 for any of them.

    Am now very seriously considering a tracker, interest only @ 2.99% for 2 years, fees free with difference from overpayments going into offset ISA/ savings acct.
  • dcc251
    dcc251 Posts: 20 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    dimbo61 wrote: »
    You need to read the T&C,s re overpayments with the Chealsea 7 year fix !
    At 3.69% you may well think thats a great rate in 2/3 years
    We know nothing about you ! other than you have a LTV of 40% and £117K outstanding
    You overpay your mortgage but I would guess that Chelsea will allow you to op by 10%( check the T&C,s ) and if you can overpay each month you could be mortgage free in 7 years!!!

    Have done all that - unfortunately I can't manage the full 10% overpayment anyhow ... so am looking at more like 13 years.
  • I am also tempted by the 7 year fix (£111k outstanding, 30% LTV and current deal ending in November). What you also need to consider is the valuation & legal fees required when switching provider, e.g Chelsea. I have narrowed down my search to the 7yr Chelsea fix or stopping with Nationwide on 5yr fix for convenience with free valuation and legal fees & cashback.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Whats the follow on rate with current lender?
  • michaels
    michaels Posts: 29,108 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I would have thought you could do much better than that for a tracker. Have you considered offset like the ybs 5 year deals giving flexibility if you decide you need the cash at any point?
    dcc251 wrote: »
    Thank you..

    All of the mortgages are portable.

    No fees above £195 for any of them.

    Am now very seriously considering a tracker, interest only @ 2.99% for 2 years, fees free with difference from overpayments going into offset ISA/ savings acct.
    I think....
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Sorry the 2 year tracker seems to ME a bad idea ! what does it revert to after the 2 years?
    You would still be paying nearly 3% with one 0.5% rise making it almost as expensive as the 7 year fix. Madness in my eyes.
    If you have no plans on moving the 7 year fix with fees of £195 is a good long term investment and overpay what you can afford
    ONLY MY VIEWS GOOD LUCK
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