Mufasa

I am currently on a standard variable rate discounted for three years. The discounted period is up at the end of the month. So I need to change the mortgage to something else before it jumps up to 6.1%APR

To change to another lender means going self cert because I need just over 4 times my income, but to stay with my current lender means I can have pretty much any of their mortgages.

So what it comes down to is this.

Fixed for 2 years at 4.5% saving £20pm on current discounted rate but with £199 arrangement fee. 80 days interest get out penalty.

Capped tracker 1% over base, costing £40pm more than current discounted rate, with £150 arrangement fee. Interest calculated daily, can't remember what get out penalty.

Their other tracker .75% over base, costing £20pm more than current discounted rate, with no arrangement fee. No get out penalty. Interest calculated daily, savings offset against mortgage debt (not that I have any yet!) and all that.

It's either the fixed, or the uncapped tracker. TBH I'm leaning towards the tracker. Do you think I'm daft to be considering paying a bit more PM for (?) months on the hopes that interest rates will fall further. Personally I think rates will fall further as they sneak us into line to join the Euro.

stevem2k

I can only say what I have done, ( and this is in no way advice ) but I have gone for a 2yr tracker .75 over base , no penalty to change if it looks like rates will rise.

Also halved the critical illness / life insurance quotes by shopping around. Ended up getting a good deal through Bonaporte Life(broker).

Steve

Mufasa

Cheers Steve.
It's the one I was that I was thinking of anyway.
Critical illness cover an all that is about £35pm which pays the mortgage off and give me a (small!) income to live on.

BTW the flat is in Teddington, so not a million miles from you!

Thanks again.

Muf

chiark

I'm utterly risk averse, so have just fixed for 5 years at 4.19 or something like that with the Yorkshire Building Society. Portable, and you can repay lumps early but there is an early redemption fee if you pay it *all* off. Unlikely in my case

Cheers,
Nick.

fast bloke

Mufasa - How much is the mortgage and how much is the property worth? There are several lenders who do not need income verification if LTV is < 75 or 80%.

Mufasa

fast bloke,

Mortgage is for 166K, downstairs just went for 245K, my place is very similar.

Just been told I can take out another discounted standard variable rate mortgage for another three years, currently at 4.04% discounted. I had thought that offer was only open to first time buyers.

So I now think I'll do that!
Not planning on moving for the next few years anyhow.

Cheers,

Muf

MattW

You can negotiate the fee - they should wave it for existing good customer.