Mortgage fixed coming to an end

tinytunes

Hi,

My mortgage rate has been fixed for 10 years with Woolwich, I am paying 5.37%. I need to either change to a new fixed rate or can stay with them and go on to their The Lifetime Tracker mortgage. The interest rate payable is currently 1.20%.

To me that sounds like a fantastic deal as we have been paying a lot higher but is it a good deal, would I be better shopping around. I am wary of going elsewhere and having credit checks as we have been in a debt management plan for the past 8 years, we will be debt free from this November and we can easily afford to pay the mortgage but I don' know what the damage to our credit score will be.

If I stay on the lifetime tracker rate what are the risks, would I be better to fix it again ?

Thank you

getmore4less

Lifetime tracker at base + 0.95% (Barclays bank base) is what that fix has bought you.

The biggest risk you have is if you change to something different is you will end up paying a lot more over the rest of the term.

How much do you owe and what is your current payment on the 5.37%?

will run some numbers

gingerdad

for me the lifetime tracker looks like a good deal - i'd continue to pay the current amount thus over paying.

rates would need to rise a lot to for it not to be a better deal (at least in my head)

i've always looked at the fixed and tracker deals, and stuck with the trackers as the amount rates need to raise by in the term of the fix was massive - but i tend to do two year fixes on part of mine and the rest is on a lifetime tracker similar to yours paying 1.1 above base.

tinytunes

getmore4less wrote: »

Lifetime tracker at base + 0.95% (Barclays bank base) is what that fix has bought you.

The biggest risk you have is if you change to something different is you will end up paying a lot more over the rest of the term.

How much do you owe and what is your current payment on the 5.37%?

will run some numbers

Thank you, we owe £134,771 and have 20 years left (it was a 30 yr mortgage) we currently pay £911/m.

tinytunes

gingerdad wrote: »

for me the lifetime tracker looks like a good deal - i'd continue to pay the current amount thus over paying.

rates would need to rise a lot to for it not to be a better deal (at least in my head)

i've always looked at the fixed and tracker deals, and stuck with the trackers as the amount rates need to raise by in the term of the fix was massive - but i tend to do two year fixes on part of mine and the rest is on a lifetime tracker similar to yours paying 1.1 above base.

Thank you, I think we will be seriously considering the lifetime tracker, I suppose we are not tied to it for the remainder of the term, we will be able to fix should the rates start to dramatically change.
It would benefit us in the short term to be paying less as our car is on it's last legs so we could get a vehicle sorted, also another one of our children starts university in September and she will get the nominal £3k in a student loan and it is up to us to provide the rest.

getmore4less

tinytunes wrote: »

Thank you, we owe £134,771 and have 20 years left (it was a 30 yr mortgage) we currently pay £911/m.

£134777 @ 5.37% 20y £917pm(£911 looks a bit low)

£134777 @ 1.20% 20y £632pm

pay £912pm paid off in 160m (13y 4m)

tinytunes

Sorry yes we are paying £917, I like the idea of overpaying now, paying off in just over 13 years sounds great. I suppose that will depend on the fluctuating interest rate.

Thank you