2 or 3 Year Fixed @ 4.59%?

Dazzle_C

I'm a 1st Time Buyer looking for some advice.

Not sure whether to get the security of a 3 year, or just go with a 2 year at 4.29%.

Any suggestions would be appreciated.

Daz

beecher

Is there a 5 year deal? Both 2 and 3 years look quite short term to me.

Dazzle_C

Yeh with the Halifax. Just under 5%.

We have considered it, although I'm not sure I want to be tied in for that amount of time.

sosos

PERSONALLY, if I could afford the 4.29% - even if it annoyingly eats into my disposable income - I would go for the 3 years. But it's such a 50/50 call because no-one knows at all what the state of rates will be next year and beyond.

beecher

Dazzle_C wrote: »

Yeh with the Halifax. Just under 5%.

We have considered it, although I'm not sure I want to be tied in for that amount of time.

It should be portable though of course that isn't automatic if you no longer fit their requirements.

Factor in the arrangement fees in your decision as you will be shelling out again in either 2 or 3 years.

Dazzle_C

I'm thinking not to be too greedy and enjoy the cheap £600 monthly repayments as long as I can.

We've got a new home under Miller Homes which is a 4 bed townhouse in Manchester.

It is such a crucial decision it's doing my head in!

Cheers

stolt

Personally I would go for the longer fix if your a first time buyer, its just my opinion. I know when we bought our first house it was nice to be able to budget all the other bills around the mortgage costs, you never know what what will happen and we felt safer knowing what our payments would be.

blued

I cant remember what my FTB insterest rate was or the remortgage after that but when I moved to my second house I fixed at 4.59% for 2 years. I could have fixed for 5 for a slightly higher interest rate and when my 2 year ran out I really wish I had done! The hassle of finding another mortgage, paying the product fees, making sure it all went through smoothly etc was a nightmare. I fixed for 5 this time and am happy I did, especially in the current climate. I've got just over 4 years left and hopefully the UK economy will be in a better state than it is now when I come to remortgage!