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  • FIRST POST
    • The Palmist
    • By The Palmist 8th Feb 18, 6:57 PM
    • 696Posts
    • 287Thanks
    The Palmist
    2 year Vs 5 year
    • #1
    • 8th Feb 18, 6:57 PM
    2 year Vs 5 year 8th Feb 18 at 6:57 PM
    Hi Guys,

    Planning on staying 5 - 10 years
    Age 35, 2 kids, 3rd on way, currently no child care costs as they are of nursery age.
    Savings all going towards deposit
    Fairly simple lifestyle
    Income ~50K per year
    Wife currently on career break but likely to be back to work in 2019.

    I have had few products to choose from, the fees are same.

    Halifax 2yr @ 1.6pc and 5yr @ 2pc
    Santander 2yr @1.4 and 5yr @1.99

    Looking at the recent news about BOE likely to put rates up which lock in period makes most sense to you.

    Appreciate everyone's situation is different and ours has just come down to these 4.

    Early repayment survey fees cashback etc. are same between both lenders.
    Last edited by The Palmist; 08-02-2018 at 7:51 PM.
    Nothing is more damaging to the adventurous spirit within a man than a secure future. - Alex Supertramp
Page 1
    • dimbo61
    • By dimbo61 8th Feb 18, 7:47 PM
    • 9,750 Posts
    • 5,253 Thanks
    dimbo61
    • #2
    • 8th Feb 18, 7:47 PM
    • #2
    • 8th Feb 18, 7:47 PM
    Not giving much away !
    Is this a new mortgage ?
    Are you planning on staying at least 5 years in the property ?
    Your age, income, job, savings, pension , kids and how you spend your income are all very relevant.
    The BOE has been about 0.5% for nearly 10 years but will rise in the next 2/3 years so your call.
    • The Palmist
    • By The Palmist 8th Feb 18, 7:49 PM
    • 696 Posts
    • 287 Thanks
    The Palmist
    • #3
    • 8th Feb 18, 7:49 PM
    • #3
    • 8th Feb 18, 7:49 PM
    Not giving much away !
    Is this a new mortgage ?
    Are you planning on staying at least 5 years in the property ?
    Your age, income, job, savings, pension , kids and how you spend your income are all very relevant.
    The BOE has been about 0.5% for nearly 10 years but will rise in the next 2/3 years so your call.
    Originally posted by dimbo61
    Sorry, edited original post to include the answers.
    Nothing is more damaging to the adventurous spirit within a man than a secure future. - Alex Supertramp
    • Zorillo
    • By Zorillo 8th Feb 18, 8:05 PM
    • 38 Posts
    • 22 Thanks
    Zorillo
    • #4
    • 8th Feb 18, 8:05 PM
    • #4
    • 8th Feb 18, 8:05 PM
    I'd fix for 5, no question. As everything is the same and the Santander rate is lower, I'd go there.
    • worried jim
    • By worried jim 8th Feb 18, 8:13 PM
    • 8,935 Posts
    • 13,718 Thanks
    worried jim
    • #5
    • 8th Feb 18, 8:13 PM
    • #5
    • 8th Feb 18, 8:13 PM
    Just fixed mine for 7 years with Santander as from May when my current two year fix ends. With just ten years left this peace of mind is a real bonus, with some over payments this gives me something to aim for.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • Thrugelmir
    • By Thrugelmir 8th Feb 18, 8:17 PM
    • 57,414 Posts
    • 50,706 Thanks
    Thrugelmir
    • #6
    • 8th Feb 18, 8:17 PM
    • #6
    • 8th Feb 18, 8:17 PM
    If you like to be certain of your outgoings then a 5 year fix is preferable.

    Alternatively take the chance that rates don't rise as quickly. Use the saving on the 2 year fix to overpay the mortgage. Thereby speeding up repayment of the debt owed. This then reduces the impact of future rate rises.

    Any fee free options available? Depending on the debt you owe shouldn't be discounted.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • The Palmist
    • By The Palmist 8th Feb 18, 8:30 PM
    • 696 Posts
    • 287 Thanks
    The Palmist
    • #7
    • 8th Feb 18, 8:30 PM
    • #7
    • 8th Feb 18, 8:30 PM
    If you like to be certain of your outgoings then a 5 year fix is preferable.

    Alternatively take the chance that rates don't rise as quickly. Use the saving on the 2 year fix to overpay the mortgage. Thereby speeding up repayment of the debt owed. This then reduces the impact of future rate rises.

    Any fee free options available? Depending on the debt you owe shouldn't be discounted.
    Originally posted by Thrugelmir
    Thanks Thrugelmir, it is the rate of interest rise which has got me thinking. I was debating [in my mind] that even if rates don't rise as quick, the deals in 2020 are likely to be 2%+

    5yr Options


    Santander 1.94% £999 fee
    Halifax 2% £995 fee
    Halifax 2.2% 0 fee
    Nothing is more damaging to the adventurous spirit within a man than a secure future. - Alex Supertramp
    • stator
    • By stator 8th Feb 18, 9:14 PM
    • 6,018 Posts
    • 3,970 Thanks
    stator
    • #8
    • 8th Feb 18, 9:14 PM
    • #8
    • 8th Feb 18, 9:14 PM
    Fix at 2%? How is that even a debate!
    They're practically giving it away for free.
    I'd fix for as long as possible.
    Changing the world, one sarcastic comment at a time.
    • getmore4less
    • By getmore4less 8th Feb 18, 9:14 PM
    • 31,365 Posts
    • 18,792 Thanks
    getmore4less
    • #9
    • 8th Feb 18, 9:14 PM
    • #9
    • 8th Feb 18, 9:14 PM
    Size of mortgage & LTV?
    • The Palmist
    • By The Palmist 8th Feb 18, 9:16 PM
    • 696 Posts
    • 287 Thanks
    The Palmist
    Size of mortgage & LTV?
    Originally posted by getmore4less
    185k
    74%LTV
    Nothing is more damaging to the adventurous spirit within a man than a secure future. - Alex Supertramp
    • Peelerfart
    • By Peelerfart 8th Feb 18, 9:39 PM
    • 1,866 Posts
    • 1,641 Thanks
    Peelerfart
    Any restrictions on on overpayments, or is that not an issue for you ATM?
    Space available for rent
    • The Palmist
    • By The Palmist 8th Feb 18, 9:44 PM
    • 696 Posts
    • 287 Thanks
    The Palmist
    Any restrictions on on overpayments, or is that not an issue for you ATM?
    Originally posted by Peelerfart
    Restriction is on overpayment of more than 10%, not an issue for me ATM as not planning on making large overpayments.
    Nothing is more damaging to the adventurous spirit within a man than a secure future. - Alex Supertramp
    • Peelerfart
    • By Peelerfart 8th Feb 18, 9:51 PM
    • 1,866 Posts
    • 1,641 Thanks
    Peelerfart
    Restriction is on overpayment of more than 10%, not an issue for me ATM as not planning on making large overpayments.
    Originally posted by The Palmist
    5 year Santander, based on what's been said IMHO
    Space available for rent
    • The Palmist
    • By The Palmist 9th Feb 18, 10:47 PM
    • 696 Posts
    • 287 Thanks
    The Palmist
    Santander 5yr applied for.
    Nothing is more damaging to the adventurous spirit within a man than a secure future. - Alex Supertramp
    • Ed_Zep
    • By Ed_Zep 9th Feb 18, 11:05 PM
    • 335 Posts
    • 260 Thanks
    Ed_Zep
    Santander 5yr applied for.
    Originally posted by The Palmist
    I think you've made a good decision.
    • dimbo61
    • By dimbo61 10th Feb 18, 4:56 PM
    • 9,750 Posts
    • 5,253 Thanks
    dimbo61
    The deals you are looking at point to the Santander 1.94% £999 fee as the best deal.
    Taking the term as 25 years !
    £185,000 plus £999 gives monthly payment of £783 a month and you will owe £155,641 in 5 years time.
    This gives your young family security for the next 5 years.
    Good Decision
    • The Palmist
    • By The Palmist 10th Feb 18, 5:02 PM
    • 696 Posts
    • 287 Thanks
    The Palmist
    The deals you are looking at point to the Santander 1.94% £999 fee as the best deal.
    Taking the term as 25 years !
    £185,000 plus £999 gives monthly payment of £783 a month and you will owe £155,641 in 5 years time.
    This gives your young family security for the next 5 years.
    Good Decision
    Originally posted by dimbo61
    I feel really bad wasting Halifax's MA's time. He was really patient and spent long appointments going through my needs for me to go with Santander.
    Nothing is more damaging to the adventurous spirit within a man than a secure future. - Alex Supertramp
    • dimbo61
    • By dimbo61 11th Feb 18, 11:31 AM
    • 9,750 Posts
    • 5,253 Thanks
    dimbo61
    Sorry but with the Halifax 2% deal you would pay £5 a month more every month for 5 years and owe £200 more at the end of 5years.
    £500 would pay for new outfits for 3 growing kids
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