advice on new 3 year fix, please

sabreflyer

I am coming to the end of a 3 year fix with YBS at 3.99% at end of march. I have about 70k left over 11 years. I overpay £100 per month and have done so for the length of the deal. I like the security of a fix but I feel i have missed out on good rates as my last two fixes have come at a time when rate increases were expected and i did feel I got a good deal but then there were no signicant increases after all and I could have been on a much lower rate.
I have been offered 2.59% for 3 years fix with no fees by YBS. Is this a good deal? Or should I be considering other types of deal?
I'm not much good with mortgages and so would really appreciate any thoughts on this.
Many thanks.

marathonic

Your mortgage is getting to a point where, if most mortgages are high-fee products at the end of your current fix, your mortgage may be too low to justify paying the fees for switching. With this in mind, I’d seriously consider a good lifetime tracker.

First Direct currently have a fee-free lifetime tracker with a rate of 1.69% above BOE base rate, i.e. it’s currently 2.19%. They also have a 1.29% above base rate tracker with a £950 fee.


With a mortgage at your level, I'd go for the fee-free option because I feel that the margin in these trackers will reduce as the BOE base rate increases.

Note: I am not a professional and am just highlighting what I'd do in your position. Of course, you may have personal circumstances that I'm not aware of that you need to consider, i.e. you need to consider whether YOU need the security of a fix.

sabreflyer

Thanks for reply. Yes, with the news this evening that there is not expected to be a rise until summer next year i will look into the First Direct deal.