New Mortgage Deal

Schaffy

Hi all,

Looking for a spot of advice on signing up to a new mortgage deal. I've currently got a tracker with YBS so I'm keen to get onto a fixed rate deal before any rate hikes occur. I'm currently looking at two options....

1. YBS have offered to switch me onto a 2 year fixed at 2.79%. Staying with YBS would obviously mean there would be no fees and no lengthy application process.

2. I've found a 3 year fixed deal at 2.49% with Coventry BS. This however comes with approx. £1000 of fees.

YBS looks like the easy option but I'm attracted to a 3 year deal. This is because at current best guesses we'd be possibly be looking to move to a larger house in 2-3 years time. Having the Coventry deal would mean we'd be under less pressure to find something quickly before our deal runs out and we face higher rates.

I've worked out over the first 2 years the YBS would be £500 pounds cheaper overall. So really it comes down to whether paying the extra £500 for the Coventry deal and going through the new length application process is worth it to get that extra year of security?

I know I'm always going to be best placed to make the choice but just posting in case anyone has any insights or in case I've missed any other factors that should be considered!

Thanks in advance for any help!

Thrugelmir

If you switch lenders then budget for legal fees, valuation fees and mortgage redemption fees. Some products do give free legal and valuation fees.

What's your current tracker rate?