Do I have enough spare cash for a variable rate?

chillicat

I am just coming to the end of my fixed rate deal. I can afford to pay up to £800 per month for my mortgage.
I have been offered a variable rate mortgage for 23 years and 6 months and would pay £700 per month at the current rate. I could extend my term again at any time for a charge of £25.
I have also been offered various fixed rate deals of 33 years and 2 months paying approx £700 per month, but these are subject to various arrangement fees ranging from £700 to £300.

My question is this: Is it better to shorten my term and overpay while the rates are low or should i hedge my bets and go for a fixed rate?

I know Martin says it depends on how much spare cash you've got but I don't know if I have enough here to cover any rate hikes over the next 3 years?

I have no savings.
Any ideas as I am not very maths savvy?

Thanks.

JayZed

More info needed...

What's your outstanding mortgage balance?
What's the current - realistic - value of your house?
What's the interest rate on your current fixed deal?
And are you looking at interest-only or repayment mortgages?

Trying_to_be_good

How big's the mortgage?

On a £100,000 mortgage, an increase of 1% in the interest rate would be £1,000 extra in interest per year (if it's an interest only mortgage), or £83 per month. Your extra available £100 per month would disappear very quickly. If I were you, I'd be opting for the fixed rate, and overpay as much as possible.