Which rate to take?

AngelaUK

On a homemover rate from Halifax at 85% LTV I can either go for 5.89% fixed for 3 years or 5.81% fixed for 5 years, both with a £995 fee, not sure which to go for as if rates are still low in 3 years and am stuck on nearly 6% wouldn't be great, but then it could go the other way. Which would you go for?

MrC-117

Being locked into a fixed rates can be annoying if you see the rates dropped, but there is a secure feeling in knowing your payments won't go up. Are you a bit of a gambler or do you like to be safe with this sort of thing?

Do you think you might be in a position to make overpayments now or in a few years? Do these fixed rates allow it? That might help you decide how long you want to be locked in for.

Not sure when the banks will start offering the good mortgage rates again. I can imagine rates being low for at least another year and slowly creeping up but Halifax might still offer you a not very good rate after 3 or 5 years (they kept doing it to me so I left them after a few years.

Squish_21

If its going to be a long term house (i.e 5 yrs+) I'd personally go for the 5 year rate as its lower and I like to know what i am going to be paying each month.

Personal choice/risk i guess.

AngelaUK

Won't have much spare money for overpayments on that rate, maybe in a few years but will probably go for the safer 5 year fix, thanks!

cbrpaul

ive just gone for the A and L 5 year fix , @ 3.99% no fees !! but thats a ltv greater than 65% , and i see your not able to do this ,

I want to know what rate im going to pay and not gamble on when things start to rise , because when they do it will be fast , very fast !!!

Go for the fixed ,

good luck