Discounted rate and Tracker mortgages

Kay888

Hi all,

So sorry if I missed the previous threads on this subject and posted to ask for your input again here. Before asking for your value input, I would like to give you the situation we are in first. My partner and I are going to move house. We expect to get £80k from house sale and use it as the deposit on a new house, which we think we want to limit the maximum price at £320k only. We are both working full time with joint basic income just over £86k a year (we normally get 5% bonus on top of that). We have some investment and private pension pots, no dependant - so financially, we are doing OK and could set the money each month for mortgage and also investment. We could also pay off the mortgage more each month and quicker with lump sum from our pension pots.

After brief discussions with a few local mortgage advisers (non-independent), it seems they really push us to fixed term mortgages and then go back to them to re-mortgage this new house later on. Knowing that the advisers are not independent and will get commission from lenders. We are not too sure if the deal is in our favour or not, so we do some research ourselves and spotted some deals from Hanley, Barclays and Santander -- Discounted rate and Tracker for term mortgages with the interest varies from 1.75% to 2.39%.

What is the risk of the deals above? Is it really good as it seems on the % APRC?
Are the packages suitable to our situation? We are a bit confused, if they are good, why people still go to fixed rate mortgages instead? We are not sure why advisers didn't mention or even want to discuss in details about them? Can anyone give us some light please? Any input would be very appreciated!! Thank you so much in advance

kingstreet

Trackers and discounts are variable and there is plenty of chatter about a base rate rise next month.

Your payments might have gone up before you actually move in.

How does that sound?