FTBer - Lifetime tracker?

bodmil

So... I'm in the final stages of getting an offer accepted on a flat and hope to be organising a mortgage shortly.

Unfortunately, as it's been a bit drawn out since I put in the first offer, the 3.69% 5 year fixed from Yorkshire as gone up to 3.89%, so I'm having a look at what else is out there. First Direct do a lifetime tracker, currently BOE + 2.69%, and with current opinion that the base rate will remain low for a few years, is this a smart risk to take as a FTBer?

I have a 30% deposit and certainly on that rate could overpay significantly each month so my argument is that I will have a decent equity from the get go, so re-mortgaging if rates increase shouldn't be an issue.

Am I missing something or does this seem a sensible plan to take advantage of low rates?

Many thanks,
B

DannyboyMidlands

I took a punt on that one. If you can afford to cover interest rate rises then why not?

I'm not sure I follow the remortgaging argument though because if this rate rises then so will others. I reckon it's best to get a product that suits under all circumstances rather than assuming there will be another readily available deal if things get sticky.

bodmil

Is there such a thing as "a product that suits under all circumstances"? Surely you have to take a punt on something, whether it's rate or stability? Judging by things at the moment (and apparently for the next few years) it seems you can get a low, relatively stable rate at the moment so ticks those boxes.

In terms of being readily available, is there anything other than equity that will judge how easy it is to hop onto a fixed rate deal?