Tracker at 2.19% or fixed 3.6% 5 years?

rainio

Hi there,
any advice on these options?
The problem is that the tracker is re-negotiated at 2 years with another £1000 fee at that point and possibly 2 yrs after etc, whilst interest may (should?) increase by 5 years to make the 5 year option more attractive.

I know this involved a crystal ball, but would do you think?

Thanks for your advice.

getmore4less

unusual to force an extra fees in advance, which lender?

what are the follow on rates after initial promotional periods.

how big is the mortgage?

attila_

i'd sell my cat for a 3.6% for 5 years - that's very good.

rainio

Through a broker - mortgage with Accord (National Bank of Australia).
The broker said after the 2 year period there would be a negotiation with more fees depending on the options taken (same with the 5 year).
Are there usually no more fees with further negotiations?

It's a £285 000 mortgage excluding £100 000 deposit - kindly lent by my mum (so around 26% deposit).

Thanks.

EDIT: Acutally, two brokers gave the same rates with accord as the best.

nick1977

rainio wrote: »

Through a broker - mortgage with Accord (National Bank of Australia).
The broker said after the 2 year period there would be a negotiation with more fees depending on the options taken (same with the 5 year).
Are there usually no more fees with further negotiations?

It's a £285 000 mortgage excluding £100 000 deposit - kindly lent by my mum (so around 26% deposit).

Thanks.

EDIT: Acutally, two brokers gave the same rates with accord as the best.

A word of advice - speaking from a friend's experience, do not use the word "lent" when you're talking about deposits of that amount. Could cause problems with your application!

Nick

getmore4less

rainio wrote: »

Through a broker - mortgage with Accord (National Bank of Australia).
The broker said after the 2 year period there would be a negotiation with more fees depending on the options taken (same with the 5 year).
Are there usually no more fees with further negotiations?

It's a £285 000 mortgage excluding £100 000 deposit - kindly lent by my mum (so around 26% deposit).

Thanks.

EDIT: Acutally, two brokers gave the same rates with accord as the best.

You don't really renegotiate you go onto the follow on rate for the full term(or change later) or get a new product with the fees at that time which may be zero or much more.

SO what are the follow on rates, remember broker s like you to remortgage thats where they get their money.

MFSaver

rainio wrote: »

Hi there,
any advice on these options?
The problem is that the tracker is re-negotiated at 2 years with another £1000 fee at that point and possibly 2 yrs after etc, whilst interest may (should?) increase by 5 years to make the 5 year option more attractive.

I know this involved a crystal ball, but would do you think?

Thanks for your advice.

Go find YBS's tracker to fixed mortgage. 75% LTV: 2.29% + BoE rate for two years followed by fixed at 3.39% for three years. Fee is £995 not including valuation and solicitor fees.

DannyboyMidlands

I like the First Direct lifetime tracker for 75% LTV. Base rate + 1.89% (currently 2.39%), £199 arrangement fee, unlimited overpayments, no ERC.

Of course FD don't pay brokers so the brokers will never tell you about them.