Fixed Rate Follow On Rate

DeanB72

Hi... Please could someone in the know clarify something for me ?
I currently have a fixed rate mortgage with Barclays which is about to end so I am looking to sign up to a new deal. Apparently I qualify for a 5 year fixed rate of 1.98% which after the fixed term switches to a lifetime tracker of BBBR+3.49%.


I was about to sign up to this but then realised I wasn't 100% sure what the "lifetime" part of the lifetime tracker follow on rate meant. I assume it means that they will continue to offer me that tracker rate (albeit variable) for the rest of the mortgage term but I wanted to double check that it doesn't mean I am signing up to stay on that tracker rate for the rest of the mortgage term ?


If I wish to switch to another mortgage or lender after the initial 5 year fixed term, am I allowed to do so ? I don't want to be signed up to a variable tracker rate for the rest of the mortgage term.


Just wanting to be sure before committing.


Thanks

getmore4less

You can leave any mortgage at any time you just pay it off and get a new one..

The key are the costs and any fees.

with most lenders there is an exit fee if you leave them(approx. low £100s).

Then there are other fees...

With the fixed part there is an ERC that does not LOCK you in just makes it expensive to leave.

On the tracker part there will be no extra fee should you wish to leave or take another product from Barclays.

Think of it as a type of SVR.

Xbigman

For years now Barclays has had a tracker type SVR once any initial deal ends. The rate you quote refers to that. There is no penalty to leave once the five years is up. Feel free to sign if you're happy with the five year deal.



Darren

amnblog

You are fortunate. The product fee on that fixed rate has just dropped by £500 (from £999).

TrickyDicky101

A perhaps minor point but probably worth noting BBBR +3.49% refers to the Barclays Bank Base Rate and not the Bank of England's Base Rate. There's no guarantee the BBBR will mirror or even track the increases/reductions in the BoE BR.

DeanB72

That's all as I thought but nice to be reassured by people more knowledgeable on the subject than I am.


TrickyDicky101... I would be planning to arrange another deal when the fixed rate ends so that I wasn't subject to unpredictable rises.


Thanks for all the replies.