Change from very low rate tracker???

kingstreet

AFAIK a broker can submit a porting case to Santander, as you can with many lenders.

I can understand the perspective though. I don't voluntarily place business with Santander and I think I'd pass on your case if I was offered it.

Some things just aren't worth the aggro, TBH.

MFree

Yes Santandare haven't been the most efficient and in fairness, our IFA could've pushed for us to take out another mortgage and we were execting to do this when we first met her.

Back to my original question, you state above, that we should keep it under review if interest rates start to rise - what scenario woudl you expect that changing to a fixed rate woudl be beneficial?

thanks for your advice,
matt

kingstreet

Happily, that's not a call I get to make. I recommend based on my clients' circumstances and needs, not on any kind of gamble on rates.

Only you can decide when you think it's time to get out of the tracker and that will be based on your opinion of interest rates and their future movements.

Thrugelmir

MFree wrote: »

Yes, I agree and as i said, the IFA is not advising to switch now but to review this decision as and when mortgage rates start to look like rising.

The fact to bear in mind is that mortgage interest rates are not going to return ever to those available in the 2002 - 2007 time frame. Lenders are going to charge a far higher margin above base rate. Profits are no longer subsidised by the cross selling of other products such as PPI. So your 1% above base is priceless.

If rising rates are a concern. Then pay as much as you can afford off the new product.

AlexMac

I've just caught up with this- and I agree the advice above to stick with your existing deal as long as you can. Like you, we got a lifetime tracker - at an even better 0.75% over Bank rate, and on an interest-only basis! - about 10 years ago and before the bank rate flatlined-

so a lucky choice, as we didn't then know that King and Carney Inc would do us such a favour (yes, I know 0.5% is bad news for savers). Unlike you, when we took out an additional loan they wouldn't extend the original deal, but least they let us keep what we had and add another advance (at closer to 3%). So although we may pay off the added loan, we'll probably keep the 1.25%-er till they carry us off in a box.

well done!