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

[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.

[Laplace]

Thanks.

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