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Tracker V Fixed
NWOIHTS
Posts: 188 Forumite
Hi
I recently went to see a financial adviser via my employer (NHS) about mortgages, been told they're good and a lot of people use them. The chap told me fixed deal is best just now because the base rate is low; he looked at a few deals and suggest one to me.
This deal is 2.78% for 2 years and then it goes up over 5% after the fixed term.
However I spoke to a quite trusted family member and they said that with a fixed rate you likely have to pay a fee to renew the deal, so I don't really know what is the best deal to go for. If rates go up I will save with a fixed, at least for 2 years but then perhaps the renewal fee will negate those savings, and if I have a tracker I will potentially pay more if rates go up but save on renewal fees.
It's all a bit uncertain - can anyone tell me their own scenario that has already went through this. I know everyone's circumstances are different but just want to get a general idea about doing due diligence with different mortgage deals etc and any sound advice you can give that may help me.
Many thanks
N
I recently went to see a financial adviser via my employer (NHS) about mortgages, been told they're good and a lot of people use them. The chap told me fixed deal is best just now because the base rate is low; he looked at a few deals and suggest one to me.
This deal is 2.78% for 2 years and then it goes up over 5% after the fixed term.
However I spoke to a quite trusted family member and they said that with a fixed rate you likely have to pay a fee to renew the deal, so I don't really know what is the best deal to go for. If rates go up I will save with a fixed, at least for 2 years but then perhaps the renewal fee will negate those savings, and if I have a tracker I will potentially pay more if rates go up but save on renewal fees.
It's all a bit uncertain - can anyone tell me their own scenario that has already went through this. I know everyone's circumstances are different but just want to get a general idea about doing due diligence with different mortgage deals etc and any sound advice you can give that may help me.
Many thanks
N
0
Comments
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It will depend on the lender.
Some lenders don't charge to retain business and offer you a new rate once the fixed period ends.Official DFW Nerd Club - Member no. 0650 -
Is your family member going to pick up the tab if their advice proves to be wrong?
The brokers insurers will.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I mean the broker is trained, regulated, and insured against making a mistake when providing advice.
A ' family member' isn'tI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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