Talk

Oh, no fee with second option.

I am reading this to mean that the SVR is now 5.99%, so you are paying 4.99% now on the discounted deal plus a £399 fee.

Let's face it, rates are not going down any further so even if they stayed the same you are only going to loose the £399 fee.

Rates only need to go up by 0.50% for you to actually be better of with the fixed deal assuming a £100K morrtgage. And I would say this is very likely to happen at some point in the next 2 years. So I would say go with the fixed deal.

Sorry, I wasn't very clear there. The SVR is currently 4.99, but expected to go up tomorrow, what to I don't know.
The first deal would be 1% below SVR, with a fee of £399
The second deal is fixed at 4.99% for three years with no fee.

I'm thinking to fix. Does it still look a good buy with those figures do you think?

Less clear cut in this case. Depends what you expect to happen to interest rates. Based on my expectations, I would say yes, fix is better value.

i would fix. 4.99 is good. who is that with (nosy, my tracker runs out in nov so need to start looking now...)

Thank you, will fix.

Ideally you would have considered switching to tracker with cap at 5pc or similiar but you do pay a fee for these it depends on the mortgage amount.

Of the two options above, I agree that the fix makes more sense, though.

That's with the Principality, but there were lots of good deals on the money supermarket website.

a tracker with a cap is ideal, i think

A tracker with a cap would be ideal on principle but the problem with the funky bells and whistles deals is that you have to pay a fortune in fees to get them.

Banks are not stupid - they will make sure a deal makes them money - otherwise it will not be on the market.

So I think the best strategy for mortgage deals and financial products is - keep it simple.

I did a tracker with a cap with Coventry BS on a property recently and I calculated that it was worthwhile. ALso think that HSBC or First direct is doing one. I think you need to borrowing a maximum of either 60pc or 75pc of the property value though. The materiality of the fee depends on the size of the loan I guess.

Keeping it simple is generally a sound principle, though.