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First mortgage about to end - tracker or fixed? Damn those pesky fees!

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Hello, my first post here, big fan of the site...

My 2 year fixed (only 28 years left!) ends in June so I'm doing the rounds of all the websites and a couple of brokers... and almost tempted to take a risk on a tracker. I'm conscious that I'm short of time so your advice is much appreciated.

My flat is worth about £****** with £****** left on the mortgage...

My situation is complicated by the fact that I may be working abroad for a couple of years, in which case people like Egg would charge an extra 1% interest. (EDIT: I need 3.9 x my salary so Egg is probably out of the question right.)

I'm going to be stung £295 for leaving A&L so I want to avoid any nasty fees this time around, and hate the idea of having to pay hundreds of £££ every few years to hop lender, which is another reason why a tracker appeals.

Also what about changing to a low-fee tracker for a year and seeing if I can get a better deal on a fixed rate after that?

Some of the better deals I've seen so far:
Egg - tracker (BoE rate + 0.75%), currently 5.75%, no fee, £90 exit fee I think
Co-Op - 3 year discounted rate @ 5.64%, £599 fee, £140 exit fee
HSBC - 2 year fixed rate @ 5.89%, £995 fee, no exit fee
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Comments

  • Mathsguy
    Mathsguy Posts: 76 Forumite
    If you follow the news and current affairs you might know that it is a troublesome time out in the financial world and most analysts predict that the bank of England will probably drop interest rates slowly over the next year or so, so a tracker mortgage does look attractive these days, especially since they can often avoid the big arrangement fees that many of the fixed rate ones carry.

    As you say, you can always jump out of a tracker onto a fixed rate at a later date and get that good level of certainty then, but if the BofE puts rates up then you'll just be stung again...

    Your egg deal there looks pretty good but if that's no good then Woolwich do a tracker at 0.99 above base rate and no fee and lend upto 80% and *I think* up to 5 times salary for new customers.
  • 3stripe
    3stripe Posts: 31 Forumite
    Hey thanks for the pointer on the Woolwich tracker, looks like an ok deal, especially with no fees. (£275 redemption)

    However the rate is based on BBBR (Barclays) and not B of E which it "follows", so is that the same thing or different?

    In comparison I've been shown stuff like the Lloyds TSB tracker - 1.03% above the BofE rate. £995 fee though for that one though!
  • JF77
    JF77 Posts: 303 Forumite
    What about an HSBC Lifetime Tracker at base rate +0.48 with a £599 booking fee?
    Excited for Florida - May 2012 :rotfl: :rotfl: :rotfl:
  • Mathsguy
    Mathsguy Posts: 76 Forumite
    3stripe wrote: »
    However the rate is based on BBBR (Barclays) and not B of E which it "follows", so is that the same thing or different?

    It is sort of the same thing. The difference is that Barclays does not have to change the BBBR when the BofE rate changes (although they ought to follow it else they will get a lot of bad publicity)

    So when the BofE changes from 5% to 4.75% on a Tuesday, for example, the BBBR should change to the same amount on the Wednesday but they are under complete control in that respect
  • 3stripe
    3stripe Posts: 31 Forumite
    HSBC Lifetime Tracker, that's a good rate, but how long are you tied in for? Not very clear from their website...

    I couldn't get through just now on the phone, apparently there is a 1 hour queue due to interest on their new rate matcher deal!!! (Which was throwing up a fee of £1,100 for me)

    Not so sure about the BBBR, some people seem to advise strongly against that kind of thing...
  • 3stripe
    3stripe Posts: 31 Forumite
    Can't find any mention of what the exit fee is from HSBC either... hmmm
  • JF77
    JF77 Posts: 303 Forumite
    I have been looking on the HSBC website and there is no Exit fee or redemption fee. The only other fee I can see is a £30 completion fee and a standard valuation fee of £155 based on the amount borrowed.
    Excited for Florida - May 2012 :rotfl: :rotfl: :rotfl:
  • Noz
    Noz Posts: 3,869 Forumite
    Part of the Furniture Combo Breaker
    3stripe wrote: »
    Can't find any mention of what the exit fee is from HSBC either... hmmm
    I don't think HSBC charge MEAFs
  • 3stripe
    3stripe Posts: 31 Forumite
    Note to self: MEAF = mortgage exit administration fee

    I'm learning a lot from this thread, cheers folks!

    I'm thinking the HSBC tracker is a good deal right now, it will get me a rate over 0.5% lower than any fixed I've seen for a similar fee. With some risk involved of course.

    If rates stay about the same or reduce slightly over the next 24 months I'll be doing well, and if I can stay on that deal for a few years after that even better.

    Been looking back at past base rates at http://www.bankofengland.co.uk/statistics/rates/baserate.pdf, it's interesting. Some scary looking numbers, glad I was just a kid in 91/92!
  • 3stripe
    3stripe Posts: 31 Forumite
    Hmm just found an easy if slightly expensive option: stay with A&L for a couple of years:

    6.24% initial rate, £199.00
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