Fixed or Tracker Mortgage

mjb71

Hi

Been offered the following:

6.74% tracker mortgage for 3 years (payments can fluctuate). £799 arrangement fee. Valuation Fee - £140.00.

Or

6.99 Fixed mortgage for 5 years. £999 arrangement fee. The valuation is free of charge.


Can you give me ideas of best option?

Thanks
Mark

sarkin

If your worried that rates will go up over the next five years take the fix. There is speculation that the BOE may drop rates next year, but with inflation on the rise I think theyu wuill find it hard to do. Can you afford for rates to go up is the question I ask. If your mortgage is affordable and you can take the hit then I would go with the tracker mortgage. Who are these rate with, have you spoken to a mortgage broker?

mjb71

These are through a mortgage advisor.
The first is with Royal bank Of Scotland the second with Mortgage Express.

Mark

Dan_Collins_2

Its hard to say without more info. The rates can be beaten but only if you fit the criteria of the lenders with better rates!

I think they are high so whats the catch?

herbiesjp

mjb71 wrote: »

Hi

Been offered the following:

6.74% tracker mortgage for 3 years (payments can fluctuate). £799 arrangement fee. Valuation Fee - £140.00.

Or

6.99 Fixed mortgage for 5 years. £999 arrangement fee. The valuation is free of charge.


Can you give me ideas of best option?

Thanks
Mark

Are these for 100% mortgages?