Lifetime Tracker Mortgage vs 2 year tracker

kizzyfur22

Hi all,,

I'm after a bit of advice please about re-mortgaging.

I've currently got a mortgage with Natwest which is on a SVR of 4% with 20 years left on it. Outstanding balance is approx £51,000 and my house is valued at £85,000 approx, hence I have a good LTV of 60%

I don't want to borrow any more money just move to a better rate while the interest rates are low (and hopefully will be for the next 2 years at least). I want to carry on making the same payments which results in overpaying £50 a month to pay it off a bit quicker

I have been trawling through the net to find good deals and the best ones I've found are with HSBC & Natwest but not sure which one is best.

The monthly payments are pretty much the same for all 3.

Natwest is 2.39% 2 year tracker (tracks 1.89% above base rate) with fee of £499 which I'm going to add to mortgage and I can overpay 10% of balance outstanding each year. There's no valuation needed or proof of income or forms to complete or credit check and can be set up in 14 days as I'm an existing customer.

HSBC offer 2 mortgages:
1st = 2 year discount special fee free at 2.49% (discount of 1.45% off SVR) , no fee, can make 20% overpayments of monthly payment
2nd = lifetime tracker special fee free at 2.49% (tracks 1.99% above base rate), no fee, can make unlimited overpayments without charge, no early repayment charges.

The only downside with both the HSBC mortgages is that I'd need to apply, have a valuation done and provide all the relevant documentation which I've no idea how long it will take. Also my employment situation is complicated as I have 2 part time jobs, one of which I've been at for 8 months but the other one I'm still in my 3 month probationary period which ends on 7 Feb.
Will that cause a problem?
How long does a new mortgage application usually take?
Is the Lifetime Tracker worth it?
(I would like to move to bigger house in 5 years hopefully)

Also another quick question my Life Insurance policy only has 18 years left on it yet my current mortgage has 20 years (a glitch from years ago). Is it better to reduce my mortgage term to 18 years to match the Life Insurance or increase the term on my Life Insurance or does it not really matter?

Apologies for the length of the post. Thanks

michaels

No idea about underwriting but with a life time tracker it is 'yours to keep' whateer happens to your cicumstances / ltv etc in the mean time. Suppose you take the 2 year deal and then in 2 years you no longer qualify for a remortgage because you are only doing 1 pt job or house prices have allen and your ltv is less, you may be left stuck on an expensive svr which can't happen with the lifetime tracker.