To track, or fix, that is the question. 12 November 2022 at 6:53PM in Mortgages & endowments 36 replies 1.8K views

proformance

Brass tacks for 2x remortgage options that have been presented to us on an 80% LTV:

Option 1)
2-yr tracker - A 2-year tracker rate @ BoE (3%) + 0.49% (3.49%), which starts in Apr 2023 to Apr 2025
--- 5.30% APRC
--- 5.49% SVR

Option 2)
5-yr fixed - A 5-year fixed rate @ 5.29%, which starts Apr 2023 to Apr 2028
--- 6.10% APRC
--- 6.49% SVR


My assumption is that rates will peak at about 4.5% in summer 2023 and could well fall back to 3% (or even further) by summer 2024 (although I am not clever enough to factor in how a Labour government might affect this landscape)

Any (preferably helpful) input is welcome. I'm not an expert in this field by any means. I may have even illustrated the above in a very confusing manner, for which I apologise in advance. 

Z

housebuyer143

Who is that tracker with? 

proformance

housebuyer143 said:

Who is that tracker with? 

Tracker is with "Platform" (Coop Bank)
Fix is with Virgin Money

K_S

proformance said:

housebuyer143 said:

Who is that tracker with? 

Tracker is with "Platform" (Coop Bank)
Fix is with Virgin Money

@proformance Assuming it's a re-mortgage (changing to Platform) and not a product-switch (staying with Platform), at 80% LTV, I'm pretty sure that is BOE+1.24% and the reason it's showing 3.49% is because Platform haven't updated their guide yet so the sourcing systems aren't giving the right interest rate.

With regard to your question (fixed vs tracker), I don't have an opinion as it depends on your attitude, how much a rise in rates would affect you, how much value you place on not having to worry about being exposed to future rates in April 2025, etc.

housebuyer143

K_S said:

proformance said:

housebuyer143 said:

Who is that tracker with? 

Tracker is with "Platform" (Coop Bank)
Fix is with Virgin Money

@proformance Assuming it's a re-mortgage (changing to Platform) and not a product-switch (staying with Platform), at 80% LTV, I'm pretty sure that is BOE+1.24% and the reason it's showing 3.49% is because Platform haven't updated their guide yet so the sourcing systems aren't giving the right interest rate.

With regard to your question (fixed vs tracker), I don't have an opinion as it depends on your attitude, how much a rise in rates would affect you, how much value you place on not having to worry about being exposed to future rates in April 2025, etc.

I immediately went in the site to find it as I wanted it as it was that good, but yes, no such tracker to be found ☹️

IAMIAM

The best tracker I can find atm is barclays 0.6% above BOE base rate for 5 years! 

proformance

K_S said:

proformance said:

housebuyer143 said:

Who is that tracker with? 

Tracker is with "Platform" (Coop Bank)
Fix is with Virgin Money

@proformance Assuming it's a re-mortgage (changing to Platform) and not a product-switch (staying with Platform), at 80% LTV, I'm pretty sure that is BOE+1.24% and the reason it's showing 3.49% is because Platform haven't updated their guide yet so the sourcing systems aren't giving the right interest rate.

With regard to your question (fixed vs tracker), I don't have an opinion as it depends on your attitude, how much a rise in rates would affect you, how much value you place on not having to worry about being exposed to future rates in April 2025, etc.

It's what our broker agreed with us yesterday and is doing an AIP for. Maybe it has just been pulled? Is it possible? 

housebuyer143

proformance said:

K_S said:

proformance said:

housebuyer143 said:

Who is that tracker with? 

Tracker is with "Platform" (Coop Bank)
Fix is with Virgin Money

@proformance Assuming it's a re-mortgage (changing to Platform) and not a product-switch (staying with Platform), at 80% LTV, I'm pretty sure that is BOE+1.24% and the reason it's showing 3.49% is because Platform haven't updated their guide yet so the sourcing systems aren't giving the right interest rate.

With regard to your question (fixed vs tracker), I don't have an opinion as it depends on your attitude, how much a rise in rates would affect you, how much value you place on not having to worry about being exposed to future rates in April 2025, etc.

It's what our broker agreed with us yesterday and is doing an AIP for. Maybe it has just been pulled? Is it possible? 

Did the broker specifically say it's 0.49% above base? 

proformance

Yeah as I outlined is it as he was described and documentssto me.

"Introductory rate = 4.40pc" 

housebuyer143

proformance said:

Yeah as I outlined is it as he was described and documentssto me.

"Introductory rate = 4.40pc" 

I'm not sure because it's definitely not in their guide for new customers. That would be market leading at 80% LTV. Unless you are a current customer? Could be a product switch rate?

proformance

 Not a current customer. 

Tbh, the AIP hasn't been drafted yet (everything was submitted and finalised yesterday. 

The chap was very pushy though, and I had just put it down to hard-selling, but perhaps he was aware that the rate was being pulled?