I am applying for a mortgage now. I don't know if I choose fixed rate or tracker rate. I just looked the lowest fixed rate in RBS for me is 3.49%. However, the lowest tracker rate for me is 4.29% based on 1.5% Bank of England in Cheltenman and Glouster--C & G.
The monthly repayment in RBS is about £64 cheaper. But I can get £80 off from C & G if the intereste rate is reduced to 0.5%. But I can switch this tracker to fixed product in C & G if I want to in the 2 years. The product fee in RBG is £200 more that one in C & G.
C & G am introduced by the mortgage advisor in estate agent. And this property is repossession. The thing I am worrying is: Once the process of applying RBS, estate agent could withdraw the offer from me. Because I did not use their mortgage product.
Another difficulty is I have to pay the product fee to RBS in front. It is not refunded if they offer the mortgage to me and I don't want it anymore.If the interest rate will going down, I prefer the one in C & G.
Does anyone have this kind of experience?
Many Thanks!