Mortgage advice - lifetime tracker

[Laplace]

My 2 year fixed rate is coming to an end and I'm looking to move to a new deal.

Santander, my current lender, have offered me:

• 2 Year Fixed No Fee 2.99%
• 2 Year Fixed £999 Fee 2.69%
• 3 Year Fixed No Fee 3.29%
• 5 Year Fixed No Fee 3.89%
• Lifetime tracker £499 Fee 2.19% above base.

I'm at the end of a 2 year fixed rate of 4.69%. Property value of around £160k and £114,500 outstanding.

I was inclined to go with a 3 or 5 year FR but I hadn't even considered a lifetime tracker until the adviser offered me it and it's kind of thrown me.

With my limited knowledge of the mortgage market I'm doing my best to make an informed decision but any advice would be greatly appreciated.

My current calculations show that it would take a rise in the base rate to 2.5% before my mortgage payments reached back to where the currently are (£700). This could possibly be around the time of when a 5 year fixed rate would end, where I then assume I wouldn't be able to get close with a fixed rate.

Crystal ball aside does this lifetime tracker seem like a viable option or am I better advised with a 3 or 5 year fixed?

Many thanks

[GTIR]

Those rates seem slightly "high", I've seen 3.29% over five with no fee.

If you're tied in to the lifetime tracker is there a fee if you change your mind?
Seems a bit too much.

Also, if you do a five you can still overpay by 10% per year which give you some options come the end.

[CoolHands]

I got my missus to get one this year when she remortgaged, also with santander. I mainly found that most other remortgages always chuck on loads of costs and that offsets the apparent advantages of the lower interest rate. Plus rates aren't going up for ages, plus (in my mind) it seems fair and reasonable, so I think it's a good deal. Get pissed off otherwise keep re-mortgaging every 2 yrs it's a right hassle, and what if your job circumstances change and they won't let you remortgage on to the good rate, you'll be stuck on their SVR so I say go for it.

Obviously experts will be along shortly to poo-poo all this....

[GTIR]

Those rates seem slightly "high", I've seen 3.29% over five with no fee.

If you're tied in to the lifetime tracker is there a fee if you change your mind?
Seems a bit too much.

Also, if you do a five you can still overpay by 10% per year which give you some options come the end.

[Laplace]

GTIR said:

If you're tied in to the lifetime tracker is there a fee if you change your mind?
Seems a bit too much.

I can come out of the lifetime tracker whenever I like without penalty.

[Sarnie]

Laplace said:

My 2 year fixed rate is coming to an end and I'm looking to move to a new deal.

Santander, my current lender, have offered me:

• 2 Year Fixed No Fee 2.99%
• 2 Year Fixed £999 Fee 2.69%
• 3 Year Fixed No Fee 3.29%
• 5 Year Fixed No Fee 3.89%
• Lifetime tracker £499 Fee 2.19% above base.

I'm at the end of a 2 year fixed rate of 4.69%. Property value of around £160k and £114,500 outstanding.

I was inclined to go with a 3 or 5 year FR but I hadn't even considered a lifetime tracker until the adviser offered me it and it's kind of thrown me.

With my limited knowledge of the mortgage market I'm doing my best to make an informed decision but any advice would be greatly appreciated.

My current calculations show that it would take a rise in the base rate to 2.5% before my mortgage payments reached back to where the currently are (£700). This could possibly be around the time of when a 5 year fixed rate would end, where I then assume I wouldn't be able to get close with a fixed rate.

Crystal ball aside does this lifetime tracker seem like a viable option or am I better advised with a 3 or 5 year fixed?

Many thanks

That tracker rate is 2.69% once you incorporate the 0.5% Base rate. I'm a broker and have placed a similar case this week that was 1.49% plus base rate, at a similar LTV to you, feel free to PM for a chat if you want some help

[Laplace]

Thanks.

PM sent

[GoTea]

I don't wish to brag, bit I think I'll stick with my 1.3% thanks.

(I wasn't bragging when I was stuck at 7% pre-crash though)

[Jockman]

Sarnie said:

That tracker rate is 2.69% once you incorporate the 0.5% Base rate. I'm a broker and have placed a similar case this week that was 1.49% plus base rate, at a similar LTV to you, feel free to PM for a chat if you want some help

That's my rate with HSBC Premier 1.49% + base - £99 fee IIRC from a while back....max 60% LTV, though they are slightly flexible.

It's a variable rate so unlimited overpayments allowed....so I do

Edited by Jockman on Sunday 27th July 22:59

[anonymous-user]

GoTea said:

I don't wish to brag, bit I think I'll stick with my 1.3% thanks.

(I wasn't bragging when I was stuck at 7% pre-crash though)

I ain't bragging I'm still paying 1.1 ie .6 above base rate on my lifetime tracker if Woolwich had allowed me to 'port' I'd still be on .49 above BR.

Do you own research as well as listening to 'advisers'.

[Sarnie]

Jockman said:

That's my rate with HSBC Premier - £99 IIRC from a while back....max 60% LTV, though they are slightly flexible.

It's a variable rate so unlimited overpayments allowed....so I do

It's not that rate or product as the OP's LTV is 71%

[Jockman]

Sarnie said:

It's not that rate or product as the OP's LTV is 71%

Gotcha - just edited my post to clarify a bit.

Yup, that sort of rate is available but you either need to do a heck of a lot of research....or get a Broker !!!