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Should I switch to 2 year fix now??
rexemper
Posts: 5 Forumite
Hi
This is my first post, so first let me say hello. I've found this site invaluable for information, advice and inspiration.
The question that I'm pondering at the moment is - should I switch to First Direct's 2.99% 2 year fix now?
Some background info:
Currently with Abbey on 5.19% fix which expires Aug 2009.
ERC with Abbey is £1,725
Looking to borrow £345k
The way I had looked at it, my monthly payments would drop by about £650/month and it would take me about 4.5 months to pay back all the fees, the ERc etc. and then I would have almost 20 months of saving £650 over what I pay now.
I would continue to pay the same amount monthly (once I had re-couped the charges and fees) so that at the end of the fix I would have paid off about £13k off the total.
I would also put any savings into the account to get the interest off-set.
Am I missing something here?
I suppose the other question is - is going for a 2 year fix now a good idea?
Cheers
This is my first post, so first let me say hello. I've found this site invaluable for information, advice and inspiration.
The question that I'm pondering at the moment is - should I switch to First Direct's 2.99% 2 year fix now?
Some background info:
Currently with Abbey on 5.19% fix which expires Aug 2009.
ERC with Abbey is £1,725
Looking to borrow £345k
The way I had looked at it, my monthly payments would drop by about £650/month and it would take me about 4.5 months to pay back all the fees, the ERc etc. and then I would have almost 20 months of saving £650 over what I pay now.
I would continue to pay the same amount monthly (once I had re-couped the charges and fees) so that at the end of the fix I would have paid off about £13k off the total.
I would also put any savings into the account to get the interest off-set.
Am I missing something here?
I suppose the other question is - is going for a 2 year fix now a good idea?
Cheers
0
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