Lifetime tracker at 0.5% above base rate

lisbapalea

Hi all,

I have a large portion of my mortgage on a lifetime tracker at 0.5% above base rate. Given that interest rates are likely to continue rising (albeit from a low level), would it be worth sticking to this tracker or should I start to brace myself?

There are 18yrs left on my mortgage.

Thanks

getmore4less

IMO anything base+<1% is a potential keeper

That does depend on the bigger picture.

total debt, other rates, LTV, plans to move and increase/decrease borrowings, income risk, other mortgage features, plans to overpay etc.

lisbapalea

Thanks getmore4less. I actually realised it's 0.99% above base rate, which is still good by your calculation.

Other part of the mortgage is on a fixed rate but proportionately that is 'only' one third of the total debt vs. the good deal being on the remaining two thirds.

LTV is c.55% based on the worst valuation.

I would ideally love to overpay but not sure how realistic that might be in current situation.

getmore4less

What rate/term/amount is the other bit?

55% LTV there are some good deals out there.

With a base +1% I would crunch the numbers.

lisbapalea

The other amount is on 3.49% fixed until next year.

getmore4less

That's high and on 55% LTV was in the ditch the fix range depending on the ERC.

what are your lenders retention deals like for that bit?