which of these deals is good?

Faz_000

Hi guys

we are currently on A&L SVR of 4.99

we have been told that we have the following options if we want to switch to a new deal and this doesnt involve a full application as such. the amount and term will remain the same theres abt 19 yrs left on it.

2 y fixed 2.19 + 999 fee

2 yr fixed 2.49 no fee.

2 yr tracker 1.94 + 999 fee

Im inclined towards the 2 yr fixed but not quite sure whether its better to go for one without a fee

the tracker deal looks good but is it wise to go with tracker when there is so much talk of rates rising

any advice appreciated!!

Annisele

Depends on the outstanding balance and the remaining term.

If you only owe £1,000, then the £999 fee doubles your balance - and something with a fee is a very bad idea.

If you owe £1,000,000, then the £999 fee is a drop in the ocean, and you should go for the lower rate.

dingling68

On the main website, there is a calculator under the mortgage section where you can compare two fixed rate mortgages including the fees charged, if any. It will calculate the overall cost over the fixed term, so that may help

Thrugelmir

Any fixes longer 2 years available?

getmore4less

Always had lifetime trackers went to offset never needed to change again.


That was when stoozing was available and trackers were base +<1%






To compare a deal add the fees make the payment the same and see what's left


It's the easiest way to do it.


eg 130 19years
1. 2 y fixed 2.19 + 999 fee (£703)
2. 2 yr fixed 2.49 no fee. (£717pm)
3. 2 yr tracker 1.94 + 999 fee (£688)


say pay £717 after 2 years
1. £119286
2. £119006
3. £118647


with 3 if rates rise 0.5% after year 1


3.a £119263


Follow on rate in case you can't change in 2 years?


what's the best long term tracker what can you afford?

getmore4less

with 3 if rates rise 0..25% after year 1

3.b £118956

dimbo61

2% and 2.5% are both good rates but only for 2 years and in that time you will have paid off what £10/11K and still owe £120K.
Are there any longer fixes of 3/5 years if you have no plans to move !
I would also keep the mortgage payment static so you are overpaying every month

pjread

Also what's your LTV, might be worth a coffee with a broker or a bit of research to see if you can do a little better elsewhere.