FD Tracker +1.49 or 5 Year Fixed 4.69 ?

anselld

yrk007, the other thing to consider is the flexibility of offset. Not sure what the YBS fix allows you to do, but with interest rates so low there is opportunity with the FD in the short term to build an offset fund through overpayments. It means any rainy-day money etc is still available but is effectively "earning" you 2.49% net interest.

I personally think that rates will stay low most of this year and next and I am hoping to make the most of that with the FD mortgage.

SHOULDI

Hi yrk007,

I went for the First Direct deal at BoE + 1.49% (In early Jan 09). I still feel the rates are going to be low for another 12 months at least. I can't see interest rates rising by another 1.5% - 2% in this timeframe with confidence so low.

I like you are contemplating a long term fixed but still feel 5-10 year fixed rates will come down as competition increases for those with decent LTV's. It's just my opinion (any maybe more a hope) but am willing long term fixed rates to go below 3.5% with little or no arrangment Fees.

Good luck.