bit clueless - advice please

saidan

hi all,
it falls on me to sort out the finances......usually i use an IFA but was disappointed in our last mortgage and so going it alone this time :eek:

i need to decide between:
offset lifetime tracker 2.69 above bbbr (cost £1499)
or
5 yr fix 3.29 (cost no fee)

we have around £10-15k saving

we have to stay with our bank due to dh being made redundant

any help with maths appreciated :T

kingstreet

Only you can decide if you want a fixed or variable product.

You need to state the mortgage amount if you want help with maths...

Are you planning to reduce the amount you owe? If so, will that reduce your loan to value into a better band?

Thrugelmir

How much do you owe?

saidan

ah yes sorry
£112000 left to pay, 22yrs 6 months.

prefer to pay more, reduce time.

68% LTV at present

kingstreet

So you're considering reducing the term, or planning to overpay voluntarily to achieve the same objective without being tied to the higher payments as a contractual obligation?

What overpayments are allowed by the products you are considering, without you being penalised?

AndyT678

Hi

If 2.69 above bbbr = 2.69 + 0.5 = 3.19% then 5 years fixed at 3.29% has got to be better than 3.19% + £1,500 fee + intrest rate risk hasn't it?

I think the difference in monthly payments will be about £6.

saidan

thank you, i went for the 5 yr fix. paperwork is in the post....