A dont know whats best kinda question

sarahbear_3

hi
can anyone advise me on my 2 year fixed mortgage runs out on 1st JAN 09 it is an interst only morgage with the Halifax. My options are anothe 2 year fixed at 4.69 but with a arrangment fee of £1,249
or I can do nothing and go onto variable which is 4.75 does anyone think that the rates will drop further. I am a single parent and my ex has just lost his job I would welcome some comments from anyone .
thank you for your time
kind regards

System

I would definitely go on to the variable, it seems clear that the interest rates will drop again early next year, so you'll be paying less than that fixed deal offers without the enormous fee.

Angelboots

See this is the dilema that many of us are facing. I think you should go on the variable rate. That fixed will probably be available for 3-6 months, so if the rates go up you should still be able to accept it and not not incure too much additional costs.

Good luck

dimbo61

When you do take out a fixed rate deal ( for security of same payment each month ) think long term as the arrangment fee will more than likely be the same if you chose 2/3 or 5 years !
As a single parent consider time ( ie child starts school, part/ full time work )
I am in the middle of a 5 year fix and happy with my decision even though BOE rate now 2% as I have the same payment each month and can plan my life and not worry about mortgage GOOD LUCK