Is this as good as it seems?

florence4

Forgive me if I'm asking stupid questions, but I'm new to all this mortgage stuff, and getting my head around a lot of new info very quickly!

I want to borrow £48-63K, and and will have a deposit of £70-77K.

My own bank is offering the deal below. It seems like a good one to me... Am I likely to find anything better?


Current Account Exclusive Lifetime Tracker

Bank of England Base Rate plus 2.39%, currently 2.89% variable for the life of the mortgage.

The overall cost for comparison is 3.0% APR.

Minimum loan amount for purchase or remortgage applications is £25,000


Fees: No arrangement fee
Charges and extras:
Early repayment charges apply for the first 3 years after completion
Valuation and solicitors' costs will apply
Cost of first standard valuation and solicitors' costs, including compulsory disbursements paid by The Bank if you're remortgaging

lee111s

How soon do you plan on taking the mortgage over? Do you plan to overpay and shorted the life of the mortgage?

motch

depends if the base rate goes up or not.....

how long is the mortgage to be for.

some good 5 year fixed around at the moment with your equity.

florence4

lee111s wrote: »

How soon do you plan on taking the mortgage over? Do you plan to overpay and shorted the life of the mortgage?

Not sure I quite understand your first question, Lee... I'd take on the mortgage on completion of a new house purchase - so within the next few months, I hope.

I might overpay, if my future earnings allow... And I will also have a BTL property, and could conceivably sell that to reduce the mortgage if the rental market slows.

florence4

motch wrote: »

depends if the base rate goes up or not.....

how long is the mortgage to be for.

some good 5 year fixed around at the moment with your equity.

Twenty years, motch. I'm thinking even if the BoE rate goes up significantly in 5+ years, it's unlikely any bank will ever offer mortgages at much less than 2.4% above base rate. Or do you think they might?

The 5 year fixeds I've seen all seem to revert to VRs around 5.5-5.9% - so more expensive over the lifetime of the mortgage I think...