which is the best of these deals?

turtleneck

I am looking to do an online re-mortgage with barclays (woolwich) and the 2 deal I am interested in are as follows:

1. 2 year fixed @ 2.49% - £0 fee - 3% balance early redemption - £343 a month

2. 2 year tracker @ 1.49% - £999 fee - no early redemption penalty - £310 a month

I like the idea of not having a redemption penalty, for example if I sold the property after one year, so I'm not sure which to go for and wonder what others think?

hcb42

how much is the loan...?

turtleneck

the loan is just under 70,000.

turtleneck

The other question I have is will I still have a "mortgage reserve account". This is basically an overdraft at 5% which I can borrow from using a cheque book from barclays. I am not sure if I re-mortgage whether they will delete the reserve account or not, any ideas?

hcb42

so 3% = £2100 if you pay back in under 2 years AND you are paying an additional £33 a month -= £396 per year - so if you sold in a year you would be better off with the tracker, if you stay more than 2, then better with the fix...

BUT the tracker rate is not guaranteed and the other is.

hcb42

I would say the reserve account would need to be paid back at the time of paying back the existing mortgage - so if you are in the red with it, then you will need to clear it too - somehow.