2 or 3 year tracker deal?

Ignatius_Reilly

I am coming to the end of a 2 year tracker with Nationwide at 4.87%. Having read the remortgage guide and spoken to L&C, I have been reccommended a two year tracker from the Abbey at 5.97%. After fees, this works out better than the best 2 year deal from Nationwide at the moment (6.25%), but as I am an existing customer, they are also offering a 3 year tracker at 5.74%. This will be better than the Abbey deal but I'm obviously tied in for longer.

I would be interested in knowing what people think about the 2 or 3 year options - I will certainly check the market again when I come to the end of the deal I choose. L&C suggested that in two years time there may be much better choice of products available, but are they really likely to be different enough to outweigh the difference between my options now?

And should I be asking L&C to also check for other 3 year deals for comparison?

Any opinions welcome

meanmachine_2

Ignatius_Reilly wrote: »

L&C suggested that in two years time there may be much better choice of products available,

How the hell can L&C know what the market will be like in 2 years' time?

Really, they are about as much use as chocolate teapots sometimes.

Go with the three year tracker.

Just my advice. And it saved you the cost of a phone call.

fraggle8

have you considered a life traker such as hsbc or first direct that way you wont have to look for new deal every few years unless you chose too?

karie

hi, have a look at the lifetime tracker from hsbc - i was offered that last week and it looks to be the best deal around - for me at least. its 5.99% or 5.89% if you have a hsbc plus account - no fees at all (valuation, exit fee, set up fee etc).

i have had a look at first directs tracker too but over a 12month period (i will be moving soon...) hsbcs offer is better as first directs fees take a while to recoup. unfortunate because i now have to move my current account from FD to HSBC and I love FD!

hope that helps!

Ignatius_Reilly

thanks all, think I'll be going with the Nationwide 3 year - quite happy to search again when the time comes if it saves me £££'s, and as I'm already with them it works out best I think

payless

obviously we don't know your circumstances / whats suitable.. but really surprised ( well not reallY) you were suggested a 2yr remtg tracker when in house 3yr tracker was cheaper , as maybe will the various term trackers ( some with no ties)

ThomasJames_2

The Woolwich are currently offering a term tracker @ 5.99% with no fees. Tied in for 3 yrs. I have just organised this for 2 of my clients.

payless

Actually the Woolwich have much better deals than that!

ThomasJames_2

Do they ? Are these exclusive deals through other networks, as I cannot see a better rate than that on a residential traker? They have a better rate on a 10 yr fixed, but thats about it?

payless

How about 5.74% , no fees, no ties .....

Not other networks... http://www.woolwich.co.uk/mortgages/tracker-mortgages.html

have you read up on dual pricing.. did you advise those clients that there maybe cheaper deals direct ?

ThomasJames_2

payless wrote: »

How about 5.74% , no fees, no ties .....

Not other networks... http://www.woolwich.co.uk/mortgages/tracker-mortgages.html

have you read up on dual pricing.. did you advise those clients that there maybe cheaper deals direct ?

Perfectly well versed on dual pricing thank you.

How can I advise on something I cannnot myself get a compliant KFI on ???

I am sure the FSA came out with something similar in an email I read a couple of weeks ago......