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mercenarul

What To Do With Remortgage? Fix Or Tracker

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It is that time for me soon and I dont know which way to go.

Base rate + 2% tracker or 4% fixed for 5 years.

My last call was to go on a fixed at rate 5.3% but that was a bad move as rates started to drop soon after I took it out.

Help and opinions wanted please.

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It is that time for me soon and I dont know which way to go.

Base rate + 2% tracker or 4% fixed for 5 years.

My last call was to go on a fixed at rate 5.3% but that was a bad move as rates started to drop soon after I took it out.

Help and opinions wanted please.

Talk to a qualified fee-based Independent Financial Adviser/Planner.

Edited by cheeznbreed

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It is that time for me soon and I dont know which way to go.

Base rate + 2% tracker or 4% fixed for 5 years.

My last call was to go on a fixed at rate 5.3% but that was a bad move as rates started to drop soon after I took it out.

Help and opinions wanted please.

We changed to a fee free SVR-1% in Dec. but I tell thee it were a right b*stard.

Brace yourself - if its a great deal they ask for tons of info. and the onus will always be on you to keep the app. moving. And you'd better have > 40% equity & be borrowing less than 3x single income.

Oh and apply more than 3 months before you need to complete. And copy everything, and get receipts, and anything by post MUST go recorded or they will lie & say they haven't received it.

Other than that its a breeze :lol:

Or just pay SVR & an application fee - they like that and will be terribly helpful.

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We changed to a fee free SVR-1% in Dec. but I tell thee it were a right b*stard.

Brace yourself - if its a great deal they ask for tons of info. and the onus will always be on you to keep the app. moving. And you'd better have > 40% equity & be borrowing less than 3x single income.

Oh and apply more than 3 months before you need to complete. And copy everything, and get receipts, and anything by post MUST go recorded or they will lie & say they haven't received it.

Other than that its a breeze :lol:

Or just pay SVR & an application fee - they like that and will be terribly helpful.

These deals I mentioned are from my existing lender, seem to be quite competative, and I do qualify. 66% LTV and 1.5* joint income so should not be a problem.

Edited by mercenarul

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It is that time for me soon and I dont know which way to go.

Base rate + 2% tracker or 4% fixed for 5 years.

My last call was to go on a fixed at rate 5.3% but that was a bad move as rates started to drop soon after I took it out.

Help and opinions wanted please.

Base rate + 2% tracker. My opinion.

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Watch out for the fees. All the supposed 'good' deals seem to have £1k to £2k 'arrangement' fees. These could amount to over 1% more per year so it may be better to go for a slightly higher rate with no fees. As to if rates will go up this year, who knows?

The gap betwee the BoE rate and SVRs is now so wide at some places that a BoE rate increase up from 0.5% to as high (!) as 2% shouldhave minimum effect, unless you opt for a tracker of course, if you're brave.

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It is that time for me soon and I dont know which way to go.

Base rate + 2% tracker or 4% fixed for 5 years.

My last call was to go on a fixed at rate 5.3% but that was a bad move as rates started to drop soon after I took it out.

Help and opinions wanted please.

You say you are borrowing 1.5x joint, so assuming your income is fairly safe, you should be able to make substantial capital repayments before interest rates rocket too much, and if they do you should be able to ride the wave so this would suggest a tracker might be a good option. On the other hand, if you are only borrowing 1.5x joint, then the 4% fixed interest will hardly hurt too much and you can still make a real dent in the debt. Interest rates may well move up in the near term, so a 2 year fix may be sufficient (and cheaper) than the five year and you can save a decent whack in the meantime to pay a chunk off in 2 years.

Either way - you are not taking a massive risk on a fix or tracker on that sort of multiple.

Edited by worzel

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It is that time for me soon and I dont know which way to go.

Base rate + 2% tracker or 4% fixed for 5 years.

My last call was to go on a fixed at  rate 5.3% but that was a bad move as rates started to drop soon after I took it out.

Help and opinions wanted please.

Personally I'm of the opinion that when you took on the 5.3% you obviously thought it was a good deal. The fact that better mortgages were available makes you look at it as a bad move but really you were paying the same amount that you were originally happy with so why did your opinion change - just because there was something better? If you always wait for something better you might end up missing the mark. In my opinion if you are happy with the repayments at 4% then go for that and ignore any "better" deals that come along. It takes any risk out of the game and i believe in this kind of uncertain economy the less risk the better.

~S~

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  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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