Am i in a good place 0-60% LTV ??

loady

I have ten years left on my mortgage, it is due to run out in may, i am currently with the lender that i also bank with, they were never able to get close to a good rate untill the last time i renewed, i am on a 2 year fixed rate at 3.60% which costs me £1.196 PCM and the term is ten years, They have just sent me thier latest offer, it looks good and i have scanned it and pasted the link to it below..

https://picasaweb.google.com/109557122445214161506/March17201202?authuser=0&authkey=Gv1sRgCNfE89jY3YzRYA&feat=directlink

Apparently i am 0-60% LTV and looking at that sheetthe two year fixed rate with the £799 product fee looks tasty but i dont know much about how it all works, that rate is nigh on 1% less than what i am paying now but what confuses me is the bit where it says 3.9% overall cost for comaprison..what will i be paying ?..the base tracker looks good but i feel rates are going to rise soon..are these good rates they are offering ? are there better deals out there ?..i lost my last mortgage broker who i trusted very much and had guided me very well through the years..i am out here on my own now and dont understand much about it.

silvertabby_2

I moved my mortgage to HSBC, fee free (all fees met by the bank including solicitors fees), to a tracker 1.89% above the Bank of England rate currently paying 2.39%. May be worth checking to see if this is still available. :j

loady

they are offering me 2.49% on thier tracker with a £799 fee...not sure if thats worth it or not..i dont really understand what rate i am paying..the 2.49 or the over for comparison rate..its confusing

getmore4less

whats the follow on rate?

getmore4less

2 years fixes with fees are usualy a very bad choice unless you are improving LTV which you are not.

loady

getmore4less wrote: »

whats the follow on rate?

Its 4% variable after the fixed term in 2014 but i can just jump ship then as there are no tie ins

getmore4less wrote: »

2 years fixes with fees are usualy a very bad choice unless you are improving LTV which you are not.

So what about a £799 product on the listed 2 year base rate tracker at 2.49% thats over 1% less than i am paying now, whereas the fee free trackers is @ 2.75, how do i calculate the difference in cost of 0.26% over the two year period, and does it justifiy paying the £799 ?? of course i wont know if the rates will rise much in the next two years.