Change to fixed rate? New tracker?

Withthewoolwich

Hello,
I'm sure someone will have asked this before but I can't find any posts that match our situation. If anyone would be kind enough to give your considered opinion it would be a great help to this very befuddled person!
We have a lifetime tracker with the woolwich which we've been on for 4.5 years. A rate of 3.19%. I've heard there are some good deals out there before the end of the year so I have been browsing. Best fix i can find is 3.5 for 3 years. However I am wondering whether, if we wait until next year and closer to a rate rise, those kind of deals will vanish, leaving us paying more in the long run.

I've discovered that (if we are eligible) we could save 100 per month with HSBC or first direct on their lifetime tracker which is 1.49 over base for term. But i realise that it's a case of if rather than when with interest rates so seems daft to pay 950 fee on another tracker if we might want to fix soon.

Thanks for taking the time to read and any thoughts received gratefully

Thrugelmir

Interest rates are now forecast to remain low well into next year. Overpaying your current mortgage may be the best approach at the current time. Though keep your eye on the news.

HSBC mortgage rates are highly competitive. Though you'll need a good household income to qualify.

getmore4less

A quick look at Barclays offerings nothing stands out for existing customers.
http://www.barclays.co.uk/Mortgages/Ourmortgagerates/P1242562266844

Work out the payback period for any switch
Add the fees and pay the same in a calculator

http://www.whatsthecost.com/mortgage.aspx

I think if someone qualifies then the best tracker rate they can get is likely to be the best option if they don't NEED to fix.

Most fixes even if competitive rates have uncompetitive follow-ons so you often need to change again any fees eat into those savings.

How big is your loan and the LTV?

lee111s

If you're looking for a tracker, Nationwide have some decent ones at the moment. I'm looking to move to their base +1.34% in March when my current deal is up. I'm looking to move house in two years so just going for a two year fix.

amnblog

Sounds like you need Mystic Meg on this one.

Withthewoolwich

Thanks all for taking time to respond. Do I work out Ltv using outstanding loan and estimated house price? In that case it's 46% if zoopla is accurate. Big improvement on when we bought as house prices where we live have shot up. I guess that would stand us in good stead for a low rate? (Sorry I don't know much about is as it is my first mortgage.)
Yes I do need mystic meg! I suppose if this were simple there wouldn't be so much conflicting advice out there. At least it's not just me being financially clueless.
I think we can overpay current mortgage by 10%. Do you know if that is normal? We would be in a position to overpay more at present so if other mortgages offer chance to overpay more when we are feeling flush I guess that would be a factor too in switching.