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Fixed rate or tracker mortgage?

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Comments

  • mrso2b
    mrso2b Posts: 314 Forumite
    Tracker it is then!

    The lower one has a £995 product fee... Is it worth going for one with a fee?
  • marathonic
    marathonic Posts: 1,789 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I'm on the same decision making process now - I'm looking to remortgage a low, £75,000, mortgage.

    For that reason, a high fee doesn't suit unless it's a lifetime tracker and I have no intention of moving for a long time - long enough for the interest savings to exceed the fee.

    I see a First Direct 1.99% lifetime tracker with a £950 fee and a 2.39% tracker with no fee. In other words, with my mortgage, I'd need to be staying in the house for at least 4 years for one product to beat the other.

    The problem is, I've just noticed that Post Office do a 5-year fix with no fee and a rate of 2.79%.

    A 5-year fix at a rate of 2.79% seems to be a no brainer over a lifetime tracker at 2.39%.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Follow on rate or another search in 5 years which may be at higher rates with fees.
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