Advice on trackers or other options

tizzle6560

Coming up to the end of my second 2 year tracker.

We did alright on it when interest rate dropped to 0.25%, though is now currently back up to 0.5%.

We owe £292k on a property valued at £475k-500k so LTV = Approx 60%. Therefore would be keen to hear what you gurus would suggest us doing this time round, or if anyone has come across any great deals recently?

Not adverse to a 5 year option this time round.

TIA

YHM

Not really an appropriate place to receive 'advice'.

You really need to be sitting down with a broker / adviser, who will provide specific tailored advice to your circumstances.

tizzle6560

YHM wrote: »

Not really an appropriate place to receive 'advice'.

You really need to be sitting down with a broker / adviser, who will provide specific tailored advice to your circumstances.

Really? So any other forum user who may be / was in a similar position, and found a great deal - this isn't the place where people might share that helpful advice?

If I was looking for a new TV and had £X budget, I wouldn't come on here asking for advice?

Take a day off mate. You might be broker but we don't all have to come running to you if we're prepared to do the leg work ourselves.

Spangled

Does your current lender offer any decent retention deals? That might be an option and would mean you don't have to go through a whole full-on mortgage application with another lender.

Also, with a £292k balance you are generally better off going for a mortgage that requires a fee (in order to secure a lower rate) - but you need to do the maths.

2-year track v 5 year-fix - bit of an apples and oranges comparison and depends on your attitude to risk, how your salaries stack up against the borrowing and how secure your jobs are - questions only you can really answer. Also - is this your forever house? Plans to have kids and then move again?

FWIW, I've just remortgaged to a 5-year fix just cos I've increased my borrowing and want some security.


Good luck!

getmore4less

Start with the current lenders retention deals(trackers and fixed) then look around at what others are offering.

(say which lender and someone can look them up)

Once you have some rates and fees someone can go through the numbers along with some of the factors you may want to consider.

you get a lot of waffle on here about fix because rates are going up with the numbers you get a better data point, fix because rates are going up by more than X%

Also by crunching the numbers you get a figures for the potential costs of the options.

ACG

tizzle6560 wrote: »

Really? So any other forum user who may be / was in a similar position, and found a great deal - this isn't the place where people might share that helpful advice?

If I was looking for a new TV and had £X budget, I wouldn't come on here asking for advice?

Take a day off mate. You might be broker but we don't all have to come running to you if we're prepared to do the leg work ourselves.

Slightly different to buying a TV. If you buy a TV and its a bit **** or not fit for purpose, you can take it back. You cant take a Mortgage back.

Also with a TV you buy it and the TV maker/TV has no say in the matter. If you get a Mortgage the lender has a say in it.

Anyway to answer your question, if you really are paying half a percent, I would be reluctant to give that up any time soon. It could be a few years before the base rate hits 1.25%, which is roughly where rates are at (there might be better rates than 1.25% out there, I have not looked). I say that as an individual and not a Mortgage Broker.

As a Mortgage broker, I would be looking to find out what is important to you and go from there. You might decide paying a little more is worth it for the security a 5 year fix will bring. Also if you hold fire for 2-3 years if/when the base rate does rise, 5 year fixes will likely be more expensive then - swings and roundabouts maybe?