3 or 5 years?

marathonic

getmore4less wrote: »

Look at lifetime not just short term options.

If rate rises will cause a problem today, how are you planing for them not to be a problem in 3 or 5 years time?

This is the best idea in my opinion. I'm going for a discounted rate because my choices of lender are limited due to personal circumstances.

Eventually, I intend to move onto a lifetime tracker.

Look at the monthly repayment of a cheap lifetime tracker and the monthly repayment of a 5 year fix. Then, go for the lifetime tracker and overpay up to what you would be paying on the fix. When rates eventually start rising, lower your overpayment. Eventually, the rate of the tracker will match the rate of the 5-year fix (but by that point, you'll have paid more of your mortgage capital due to the overpayments).

HSBC's 80% LTV lifetime tracker is 3.29% with a 599 booking fee. That's a 0.7% overpayment at current rates. The only reason you'd ever need to remortgage is if tracker rates drop - or, for example, a better rate becomes available when you hit 75% LTV.