another which mortgage question

shoe-gal_4

hi guys we are getting a mortgage for our house and have 15% deposit.

the 2 best offers we have been given is either:
3 year fixed at 5.99% or
5 year fixed at 5.99%

I cant get my head around whether we should fix it for 3 years or 5.

the mortgage advisor said that we should look at perhaps 3 years as by then the house value will increase and so we will have more equity in the house. im not sure if this will be the case.

i am concerned that 5.99% is on the high side but this is the best rate we can get at the mo.

oh and my OH is a teacher and so the 5 year deal is with Scottish Widow and as he is a teacher they waive the £995 arrangement fee.

thanks in advance for your help.

Robert_Sterling_3

It is a bit like Deal or No Deal. You have to pick the (Box ) Mortgage now and then wait for 5 years before you know which (Box) Mortgage turns out to be the better of the two. Your call.

shoe-gal_4

thanks Robert. you're right it is a bit like deal or no deal and i dont even like the programme!
my OH is leaning towards the 5 year deal esp as the arrangement fee is waived!

Robert_Sterling_3

I am leaning in the direction of OHs view but it is still a gamble.