Coming off 2 year fix in July

paolo_rossi

Hi,

We're coming off a 2 year fix in July 4.39% with Nationwide - am looking at the following options - any advice gratefully received...

According to my calculations (?!) the Woolwich lifetime tracker looks like the best option and because of the no fees still looks like the cheapest even if rates were a quarter point higher.

Does anyone think rates could rise by more than 0.25 over the next couple of years??

Based on mortgage of 139k over 20 years (current value of house 300k)
Total costs calculated over 2 years

Provider – rate – fee – total cost – total cost if ir+0.25%
Woolwich Lifetime Tracker – BoE +0.74% – £0.00 – £23,402.40 – £23,880.96
HSBC Discount 2 Years – HSBCVR -0.82% – £999.00 – £23,815.32 – £24,287.40
HSBC Lifetime Tracker – BoE +0.99% – £0.00 – £23,880.96 – £24,364.32
Woolwich Fixed 2 Years – 5.49% – £995.00 – £23,924.12 – £23,924.12
Nationwide Tracker 3 Years – BoE +0.74% – £599.00 – £24,001.40 – £24,479.96
Nationwide Fixed 3 Years – 5.75% – £599.00 – £24,020.60 – £24,020.60
HSBC Lifetime Tracker – BoE+0.63% – £999.00 – £24,192.60 – £24,668.76

_Andy_

Hi

It's impossible to say which of the above is 'best' - I've no idea if you prefer the stabiliy of a fixed rate or are happy with the potential risk of a tracker.
Or, if the most important thing to you is lowest initial payment or overall cost.

The fact that you've added up total cost does imply this is most important - if so then clearly the Woolwich .74 tracker might be 'best' in your own situation.

Not exactly sure what advice you're wanting.

MartynwithaY

Hi Paolo

If you can pay the fee up front, then you might want to consider HSBC's 'rate matcher' offer.

Like you, I'm coming off a rate of 4.39% and while they won't match that, they will quote you for rates above 4.54%. In the end I settled on 5.09% with a £999 fee (2 year fix).

Putting your figures into a spreadsheet and HSBC's online 'fee calculator' gives a Total cost over 2 years of £23,181. So pretty close to the Woolwich tracker.