Remortgage - but to whom?

caileag

My 2 year fixed rate is up at the end of the year, and I am looking to remortgage. I am looking at lifetime rates, as I want to avoid having to do this again in 2/3/5/10 years, and have narrowed it to two deals, but cannot decide

Situation: LTV <40%, borrowing 2.7 time income, married but only me on mortgage/title deeds. Currently overpaying (and wish to continue), savings of about 30% of mortgage but intend to spend these in a few years (home improvements)

Option 1: HSBC tracker, BoE Base + 1.49%, £499 fees (existing account holder)

Option 2: Coventry Variable Offset, currently 1.89%, £999 fees

What is concerning me is the fact that Option 2 is a variable - so Coventry could increase the rate whenever they want, not just when the base rate moves.

Do any of you Wise Folk have advice? Can anyone remember how good Coventry are at aligning with base rate moves? I am told Coventry's customer service is excellent, does anyone have experience?

Thanks

Caileag

Thrugelmir

With the Coventry product you are paying for the privilege of the offset facility.

HSBC gives you a straightforwrd no nonsense option.

caileag

Thrugelmir wrote: »

With the Coventry product you are paying for the privilege of the offset facility.

HSBC gives you a straightforwrd no nonsense option.

Thing is, Trugelmir, ignoring the fees for now, Coventry offset is actually cheaper than HSBC by 0.1%! (Coventry actually have another product, non-offset, at 0.1% lower again, but I have discounted that one from considerations)

I am more concerned that Coventry might just decide to raise all their variable rates without waiting for the base rate to move (as they are entitled to). I wonder how good they were at reducing rates as base rates fell?