Stay of lifetime tracker or move to 5 year fixed rate?

getmore4less

nannyfish wrote: »

Thanks lots for all the input. I'm confused though. I had a tracker which ran out two years ago which was like to ones mentioned, ie around 0.5% above base rate. I even managed to overpay for about 3 years and was sitting pretty. then it expired and had to remortgage (also raise capital for house improvement) and got the new rate. Even now if I search trackers they are around 2.5% above base rates. Where are the sub 1% trackers?

Mortgages don't expire, a promotional rate may finish, but the mortgage can run for full term there is no have to remortgage.

What was the follow on rate of that base+0.5 tracker?
Was it a lender that allowed you to get overpayments back?

If that followon rate was good then your advisor should have looked at keeping that with additional borrowing or gettng overpayments back.

40% ltv if income and credit rating is good you have the pick of the bunch
lifetime trackers + <1% are gone, what about
First direct +2.19% £499 fee.
HSBC base + 1.89% £999 fee.


FOLOWON RATE IS CRITICAL to any deal you look at.

Any fixed rate only gives you short term certainty(unless you are to finish you mortgage at the same time).

Remember by being on a lower rate you can overpay and this mitigates any rate rises when they come and this is quantifiable for a number of senarioes to compare agains the fixed's term.

whats your full term?

nannyfish

The mortgage has 16 years to run. Balance of around £120000 now with 42000 interest only (from an original endowment policy for 50000), the rest repayment. the tracker was reverting to around 4.5%. Have decided to stick with the tracker for now. 2.27 above base rate isn't too bad for now and I don't have to pay any more to keep it. Thanks for all the help, although my head now hurts.