2 products - can't decide!

murphydog999

We are favouring 2 mortgage products from our lender and it's pretty much down to fixed rate or tracker. Any wise advice out there?

2yr fixed 3.09% fee £995 4.0% overall APR. Payment £958 (example shows fee included in payments)
2yr tracker 2.99% fee £995 3.9% overall APR. Payment £944 (example shows fee paid up front)

They are so evenly matched, does it just boil down to whether we think the base rate will rise within 2 years?

Is the fee best paid up front?

T.I.A.

getmore4less

THe fees are the same so you can ignorethem in proper comparisons.

It makes no difference paying up front or adding to the loan you either have the money or you don't so borrow the appropriate amount.

adding fees usualy means you don't pay if the deals falls through.

Whats the followon rates if the same you can ignore that.

APR is useless for comparing.

you don't give enough details to do the proper comparison

You are trading 0.1% for rates not going up in 2 years do you feel luky.


on £200k over 25years paying £958pm you have after 2 years

3.09% £189,047.13
2.99% £188,646.03

So about £400 extra for security of the fix

what is the mortgage and term?

murphydog999

Thanks. 17 years £151K

murphydog999

Any more thoughts anyone?

GMS

Other peoples thoughts are irrelevant. It is a straight choice between taking a gamble on rates staying low or insuring against a rise for the same period.

Which is you? Risky or safe?

bigadaj

Rates aren't going lower so whilst it will probably make little difference why not get the security of the fixed rate at little or no cost

getmore4less

murphydog999 wrote: »

Thanks. 17 years £151K

on £151k over 17 years paying £958pm you have after 2 years

3.09% £136,927.54
2.99% £136,630.32

£300(ish) to fix.

getmore4less

bigadaj wrote: »

Rates aren't going lower so whilst it will probably make little difference why not get the security of the fixed rate at little or no cost

There has been talk of rates going down so canot be ruled out.