Mortgage - is base +2.49 percent lifetime tracker good?

[philv]

Hi
Currently have a fixed rate mrtgage with penalty to exit.

I worked out the figures and if i change to a lifetime tracker of base plus 2.49
It will cost me 300 pounds total (considering the remaining period of the current fixed mortgage).
Ie reduced monthly payments for 10 months - penalty - new mortgage fees.
Now the question is-

Is it worth the extra 300 pounds to get on to the lifetime tracker of base pluse 2.49?

It seems o be the best deal at the moment but are there likely to better tracker deals than this in a years time?

Thanks for any help

[philv]

I did that before and have been paying 5.45 for the last 4 years
How was i to know the world would go into melt down!

[otherman]

philv said:

Is it worth the extra 300 pounds to get on to the lifetime tracker of base pluse 2.49?

Since no-one can possibly answer this, its a big gamble. Question is, how much will it cost you to get out of if it turns out to be a terrible deal?

[philv]

10 months left on fixed.

Reducuction in payments over 10 months plus new fees plus fixed rate exit penalty
Means i pa 300 total more over that 10 months.

So - ver little more if the new deal is one to be grabbed.

There is no tie in to the new deal.
I can change again any time.

[Welshbeef]

Well I'm on a similar deal and at the time I got it it was the best we could get. If only we knew 5 years ago would have done this offset lifetime of base rate plus 0.1%... Ah well we missed that chance.

[philv]

Why on earth cant we just get a fixed rate for the whole term at a decent fixed rate similar to france.
I just dont get it.
Everything has to be a gamble in this country.

I had this in france - much simpler - knew where you stoof and what you could afford for the lifetime of the mortgage.

[Welshbeef]

philv said:

Why on earth cant we just get a fixed rate for the whole term at a decent fixed rate similar to france.
I just dont get it.
Everything has to be a gamble in this country.

I had this in france - much simpler - knew where you stoof and what you could afford for the lifetime of the mortgage.

You could get a European bank to lend to you in the UK under those terms.

[philv]

Possible - but i imagine complicated and without the same protection maybe.

[philv]

Is it likely that as rates start to rise the rate above base will cole down?

[Sarnie]

philv said:

Is it likely that as rates start to rise the rate above base will cole down?

Not in my opinion.

I'd be very suprised to see rates close to base or below it ever again.

[philv]

Does anyone know what the best rates above base for a tracker were a year ago?
A long shot i know.
Wondering if the trend is for better or worse recently.

Does anyone know the future?

[davepoth]

philv said:

Hi
Currently have a fixed rate mrtgage with penalty to exit.

I worked out the figures and if i change to a lifetime tracker of base plus 2.49
It will cost me 300 pounds total (considering the remaining period of the current fixed mortgage).
Ie reduced monthly payments for 10 months - penalty - new mortgage fees.
Now the question is-

Is it worth the extra 300 pounds to get on to the lifetime tracker of base pluse 2.49?

It seems o be the best deal at the moment but are there likely to better tracker deals than this in a years time?

Thanks for any help

If the £300 includes the extra payments on the mortgage for the rest of the term, I'd be inclined to stick with the fixed rate - interest rates can't realistically go any lower, and when they do finally go up, they'll go up quite a lot. £300 is quite cheap to lock in certainty.

[Sarnie]

davepoth said:

If the £300 includes the extra payments on the mortgage for the rest of the term, I'd be inclined to stick with the fixed rate - interest rates can't realistically go any lower, and when they do finally go up, they'll go up quite a lot. £300 is quite cheap to lock in certainty.

But his fixed rate is only for another 10 months.

[Cheib]

Sarnie said:

philv said:

Is it likely that as rates start to rise the rate above base will cole down?

Not in my opinion.

I'd be very suprised to see rates close to base or below it ever again.

You'd hope so but I we'll see rates much closer to base rate when it goes back up again. People thought we'd never ee 90% LTV mortgages again in 2008 but they're around now.

[Welshbeef]

davepoth said:

If the £300 includes the extra payments on the mortgage for the rest of the term, I'd be inclined to stick with the fixed rate - interest rates can't realistically go any lower, and when they do finally go up, they'll go up quite a lot. £300 is quite cheap to lock in certainty.

?
He is on a fixed rate which is ending in 10months time
The deal he is looking at is a variable
Future rates or spread from base could be higher so his question is is it worth switching now and sucking up the £300hit? He could delay month by month to lower the £300 but if Greece leaves Euro this weekend well... That spread could be amplified a lot more

[philv]

Exactly

Nicely summarised

[philv]

Although it might be 500.

There may be a valuation fee involved.

House was bought as a reposession 4 years ago at a good price.

Since then prices in this area have fallen 20 percent .
But mine has only fallen 5 percent.
I had an offer fo buy my house so fairly certain of the value.
Howether, i think the banks computer valuation will just assume mine is worth less than it is and therefore not meet the required ltv.
Therefore a normal valuation probably required.

Ill have a go tomorrow over the phone.

[Gareth79]

coyft said:

I think HSBC had a deal at 2% above base this time last year and it's now 2.5% above.

I was on base +2.24% with them (lifetime tracker, no redemption fees), back in January I saw they had a fee-free deal and switched online to base +1.89% in about ten clicks at no cost!