fixed rate woolwich for 3 years or lifetime tracker?

johnny_cashfree

Dear All

At the moment i owe £70K paying £632 a month over 15 years at woolwich SVR of 7.390%. This is obviously silly.

Should I switch to a Woolwich 3 year fixed at 5.49% with £1095 application fee or their Lifetime tracker at 5.74%, variable for the remaining term of the mortgage. With no application fees.

I have always had a fixed mortgage but this lifetime tracker seems too good to be true, with no fees, no penalties and the ability to switch whenever I want.

Any dangers of taking the Tracker?

Any further advice would be greatly appreciated. Thanks in advance.

Capricorn_One

johnny_cashfree wrote: »

Dear All

At the moment i owe £70K paying £632 a month over 15 years at woolwich SVR of 7.390%. This is obviously silly.

Should I switch to a Woolwich 3 year fixed at 5.49% with £1095 application fee or their Lifetime tracker at 5.74%, variable for the remaining term of the mortgage. With no application fees.

I have always had a fixed mortgage but this lifetime tracker seems too good to be true, with no fees, no penalties and the ability to switch whenever I want.

Any dangers of taking the Tracker?

Any further advice would be greatly appreciated. Thanks in advance.

The only danger I can see is that the BOE might start putting up the interest rates dramatically, which seems unlikely at the moment.

I'm on a tracker, +0.5%, which was also fee-free with the ability to offset. One of my better financial decisions recently.

If you've got subtantial savings compared to your mortgage you might want to consider their offset tracker.

I think in this market it's a good deal. You can always remortgage again back to a fixed.

I'd also say get it sorted quickly before they decide to pull it.

johnny_cashfree

Thank you Capricorn One, as I do not have much in the way of savings I will probably not go down the offset path just yet, but thanks for the advice.

After further enquiries I think I'll go for the tracker, as the fee for the fixed rate would have to be up front and cannot be worked into the monthly repayments. (which would be more suitable for me)

I'll apply on tuesday, and hope for more rate drops

Thanks again

TEDDYRUKSPIN

johnny the question is what you want? Would you cry if the BOE starts to increase the rates? How would you feel if it went up rought £22 p/m?

The tracker is a very reasonable rate at the moment and no application fees. Have you considered HSBC with the remortgage tracker at 0.48% above the bank of england. One off booking fee at £599. Lifetime tracker. Seems to be the best on the market at the moment.

johnny_cashfree

I think the fact that my mortgage lender (Woolwich) has told me the £995 application fee + switching fee of £100 would have to be upfront, has swayed me towards their Lifetime tracker.

Thanks for your recommendation, the HSBC rate is better but the application fee is a slight turn off for me.

Thanks again.