Intelligent Finance Offset Mortgage?

emmonk

We currently bank with IF and like the feature of multiple savings accounts etc. We have just been sent a letter saying they have an exclusive deal for current customers on a 3 year tracker offset mortgage.

It is an initial rate of 5.75%, going up to 7.2% in 3 years (when we would remortgage again!) with an arrangement fee of £899.

Does this seem like a resonable rate. All the mortgages with better rates seem to have really HUGE arrangement fees.

Also, blonde question:o , does a tracker mean that when the Bank of England base rate goes up by 0.5%, the tracker rate will go up 0.5%?

Thanks for your help!

herbiesjp

You have looked for cheaper interest rates but found they have higher fees

Have you looked at higher interest rates with lower fees? It could be that you find a fee free deal that saves you the £899 arrangement, or at least part of it, after taking into account the overall cost over the 3 years

The tracker deal is indeed a variable rate - so if the BoE moves the deal will also move in the same way. Are you on a tight budget? Can you afford payments increasing?

mrwibble

emmonk wrote: »

We currently bank with IF and like the feature of multiple savings accounts etc. We have just been sent a letter saying they have an exclusive deal for current customers on a 3 year tracker offset mortgage.

It is an initial rate of 5.75%, going up to 7.2% in 3 years (when we would remortgage again!) with an arrangement fee of £899.

Does this seem like a resonable rate. All the mortgages with better rates seem to have really HUGE arrangement fees.

Also, blonde question:o , does a tracker mean that when the Bank of England base rate goes up by 0.5%, the tracker rate will go up 0.5%?

Thanks for your help!

Just been trying to get a remortgage from IF as my current 7.25% providers (long story ...) - call them today and no absolutely nothing for existing customers except 7.25% even if I move away (including banking) - utter madness when they are offering sweet deals for new customers to not offer "saves" for existing customers wanting to move.