New Mortgage Deal

[lloydi]

Hi whats the general consensus on mortgage deals at the moment and going forward.

My current deal ends this month 2 year fixed rate paying £364.34 at the moment it will switch to the banks standard variable which is 3.5% and a monthly payment of £274.05

I can either stay on this for the remainder of my mortgage term with no tie in or opt for the following (from my current lender)

2 year fixed rate 4.19% £305.64

2 year tracker 2.59% £244.03

Im tempted by the tracker as rates would have to increase by 3% to bring me back to what im currently paying, what are your thoughts how will the bank of england manage rates over the next two years? Is the forecast for them to stay low or a large increase? thanks

[BertRoot]

Personally would go with the Tracker and overpay up to what you are currently paying. Reduces your term somewhat but in al honesty I have no idea how many years you have left. Fucking cheap mortgage by the way.

[ant3b]

Wish my mortgage was that cheap lol.

Id go with the standard tracker and pay the extra

[lloydi]

Lol cheers I'm tempted by the tracker its a 35 year term im trying to lower costs for a couple of years while I train to be an electrician then once I'm on higher wages will reduce it again. Mortgage is currently 66k

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[ant3b]

mines 75k but 495 a month..

grr lol nice though mate.. over pay and you will be laughing. In a few years

[Geezah]

I currently owe £171k
95k to family and rest on morgage @ £620 p.m with 17 yrs left
Co-op (CIS) tracker

[lloydi]

Blimey 95k to your family! They are generous lol I'm hoping once I qualify as an electrician I will have the potential to increase on my current wage significantly and then reduce the term again. Looks like the tracker is my best option at the moment.

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[BertRoot]

35 years? Aye caramba!

[Sanj[UK]]

35 years??!! Can I ask with who? I thought the max was 25 years

[lloydi]

Halifax mate, they will go to 40 max. Like I say its only temporary for a couple of years then I will take it down to 25. I also noticed Natwest do 35 years max

[garagekru]

my mortage has just come to the end of a 24 month traker that was nice. its now on the standard variable rate so has gone up. After reading this am i right in thinking that i could ask for the traker again but would be tided in to that for a further 24 moths if they agreed?

[ant3b]

my mortgage is over 35 years at the time .. high interest rates only way it would happen

[Mystical_2K]

mines due for changing in september and i have no idea what to go for, had it nearly 3 years ago at a fixed term of something like 6% (just before the market bombed and it was a case of it could go either way so wanted something where i knew what i would be paying), mortgage is £420 a month over 25 years and got about £60,000 left to pay i think, if i get offered a similar deal to the above i would go for the tracker option too

[ant3b]

Come to think of it mines in August.. Tracker it is

[garagekru]

ok so now my first 24 months is up do i need to ask them to do a traker again? is it standard for them to put you on to a standard variable rate unless you request another 2 year deal?

sorry to sound thick but no one ever teaches you these things

[ant3b]

AFAIK they will put your on the standard variable..

Just been looking up mine and its 2.5 % get in

[flumperino]

35 years is pretty much the standard for new homeowners these days.

[garagekru]

AFAIK they will put your on the standard variable..

Just been looking up mine and its 2.5 % get in

right so i just ring them up and say i wanna be on a tracker for another 2 years?

is that classed as a remortage? do u have to pay a fee normally?

[garagekru]

well ive learnt something this morning

I can get a new deal for nothing so ill be saving 140 a month aslong as the base rate stays low

im guessing it never pays to stay on the standard variable rate and they hope people like me dont know they can change. Must be making millions out of mugs like me ;(

[BertRoot]

I usually change mine at the end of my term but I got a phenomenal deal before the interest rates dropped on a tracker and pay way under 2% currently so will not change until absolutely necessary.