Current Deal Ending Soon

jumbowiffy

Hi Forum.

Advice greatly appreciated.

My current mortgage deal ends in a few months and i pay £536 per month (4.28% interest - £286 - then £250 overpay).

If i stay with current provider i receive £400 cash back and the rates/monthly payments are lower as LTV is 51.8%.

Would the forum recommend tracker for 2-3 years of 3-5 year fixed?

I dont want to really pay any additional fees if possible if I was to choose a new provider.

many thanks

J

kingstreet

We wouldn't recommend either. You need to decide what you'll feel most comfortable with in the coming years, based on what you think might happen to interest and mortgage rates.

If a better deal involves payment of fees, add the fees to the interest payable over the time the deal applies to see how it compares with no-fee offers.

It's also worth bearing in mind, your follow-on rate, that which applies if you do nothing when your current deal ends, may be very attractive and may allow you unlimited overpayments. Jumping into a new offer straight away will probably mean more early repayment penalties for a few more years. What is the follow-on rate for your mortgage?

jumbowiffy

the follow on rate will be 3.9%

kingstreet

jumbowiffy wrote: »

the follow on rate will be 3.9%

So consider that, together with your current lender's customer retention products and what other lenders might offer to remortgage to them.

As I mentioned, factor in the effects of any fees by adding them to the total interest cost for the offer period and don't forget the follow-on rate of the deal you take now, just in case there's some reason you can't get a new deal next time round.