Lifetime tracker 'trekker'

sebastianj

Hi,
Regarding mortgages,I have read somewhere the term (Lifetime tracker 'trekker'). Can someone please tell me what lifetime means, is it the life of a mortgage or the person's life. In theory mortgage is on the house, so while it is there bank don't loose.

sebastian

kingstreet

Lifetime of the mortgage, so 25 years in most cases.

If the product is portable, you may be able to take it with you to your next mortgage with the same lender on a different property. If you meet the lender's criteria, loan to value and affordability requirements, of course.

1stTimeBuyerConfusion

Hi
Sorry to tag onto this as it's a few days old now but would love some clarification re lifetime tracker. On the basis of a lifetime tracker say at 2% above Bank of England Base Rate for the whole term of the mortgage ie. 25 year period normally....My question is can you leave/switch out of a lifetime tracker say after 10 years (even if the lieftime term is in fact 25 years) if your over-all rate is no longer competative. Obviously would probably be subject to early departure fee etc but is it even possible or are you stuck at that rate for a 25 year period?!

We're first time buyers with a 50% deposit but the best deals (without early repayment charges!) appear to be these lifetime trackers at the moment. Would rather track than fix personally but only if the rates stack up and the 2 year trackers all have these early repayment/over payment fees which we really want to avoid so we can pay it off asap if we can.

Have read the whole of Martin's mortgage guide but any help would be appreciated!

jamesperrett

You would need to check the terms of the mortgage that you were going for but the lifetime trackers that I've had didn't have early repayment charges although my current one has something like a £200 final repayment charge which you have to pay whether you repay early or carry on to the full term.

James.

1stTimeBuyerConfusion

Thanks james that's good to know. Know it all depends on the actual t&c's of the mortgage we take but is it possible to leave a lifetime tracker say after 5 years? Or are you stuck in it for the 25year term?
Thanks

dimbo61

Again you need to read the T&C,s very carefully and if you have questions write them down and ask the mortgage adviser at the lender you are looking at.
Lots of different deals available on Life Time Trackers ie tracks at 2% above base for the first 2 years then 3.5% above for the remaining term with a ERC if you leave in the first 2/3/5 years ??
Unless you give us the name of the lender and the deal offered we cant comment.
Have you spoken to a " whole of market mortgage adviser"

AHAR

My Nationwide lifetime tracker from 2007 allows me to change without penalty after 5 years. Not that I'll be doing that.

Thrugelmir

1stTimeBuyerConfusion wrote: »

On the basis of a lifetime tracker say at 2% above Bank of England Base Rate for the whole term of the mortgage ie. 25 year period normally....My question is can you leave/switch out of a lifetime tracker say after 10 years (even if the lieftime term is in fact 25 years) if your over-all rate is no longer competative.

Personally I expect rates of mainstream lenders to be 2% or more above base in the future. The days of sub 2% rates are gone.

Not saying that there won't be some products. But availability of these will be extremely limited.

1stTimeBuyerConfusion

Ok thanks everyone for your comments, all helpful stuff. At least I know that in theory lifetime trackers may exist which allow you to leave before the end of the 25yr term (almost like paying a premium to use a break clause in a lease) - hearing you all loud and clear re T's&C's.

Havent found anything under the 2% + base rate even via whole of market broker, think those days are long gone. Currently considering a 5 year tracker which is base rate + 2.69. Very lucky as have 50% deposit and have been told should be able to get a good deal for that LTV ratio, but what qualifies as a "good deal" is a whole other can of worms!

Thanks again for your time.