Which mortgage to choose...?

blinko

Hi all,

I am in a bit of dilemma. Which mortgage to choose...?

I am torn between 2.

Background
Goals are ideally to pay off mortgage ASAP. In theory this would happen as my wages should rise over time and thus in 5 years time I hope to have more disposable income to make larger overpayments. (LTV 60%)

The market seems to predict (based on most commentators viewpoints) that interest rates in 2017/2018 will be at 2.5% but i'm not sure what they will be 2019 onwards (they may fluctuate around 2.5 - 3% or hit 4%+)


Mortgages
HSBC lifetime tracker at 1.5% above base (currently 2%) - allows unlimited overpayments and no early repayment charges.

http://www.hsbc.co.uk/1/2/mortgages/products?pcode=A001004470000000000000000000

OR

Barclays 10 year fixed at 4%. £1.5k arrangement fee.

http://www.barclays.co.uk/Mortgages/Fixedratemortgages/P1242557963470

Noriwch & Peterbrough, 10 year fixed 4.2% no arrangement fee

http://www.nandp.co.uk/mortgages/types-of-mortgage/fixed-mortgage/10-year-fixed-rate-75-28214/

Alternatively does anyone know any better products out there.

Other
Side note - I have also discovered that I am not on the electoral roll for the last 7 years BUT i do have a solid credit history for the last 7 years (numerous credit cards & current accounts taken out & repaid in full with no late payments) do you think this will be a significant factor in mortgage approval.

Thrugelmir

Hard to see you beating a lifetime tracker rate of 1.5% over the entire term of the mortgage.

Obvious benefit is that you could overpay from month 1.

Every year forms are sent for electoral roll registration so really no excuse. Could pose you an issue.

getmore4less

Base + 1.5% no more fees, changing and unlimited overpayments.

look at £100k at 2% and 4.2% paying £600pm

1 94750 96940
2 89400 93750
3 83940 90426
4 78360 86960
5 72680 83840