Stick or Twist?

danielle3905

Like many people I came to the end of my fixed rate mortgage in December 2008 and I have been enjoying the benefits of a variable rate with Bristol and West since then (currently 2.99%) My mortgage payments have dropped by £85 a month, however, I can't help thinking that how long is my luck here going to last!

I spoke to Bristol and West last week who can offer me a 3 or 5 year fixed deal..

* 3yr @ 4.25% with a £499 fee.. The monthly payments will go up£60 p/m
* 5yr @ 4.69% with a £299 fee .. the payments will go up £85 p/m

As my LTV is still about 95% (first time buyer) I think I will struggle to get a mortgage elsewhere and I am best to stick with Bristol and West.. But is it a good time to go to a fixed rate, or should I wait it out a little bit longer? I know there is no "real" answer here, but I would like to know your thoughts!
Thanks!

Trying_to_be_good

If you can't afford for rates to go up (much), it's a good time to fix. If you can get those rates with your LTV, I'd jump at it (torn between three years and five - probably I'd go for the three year, but overpay by the extra £25 per month and anything else I could find).

System

I think those are both fantastic deals.

Peelerfart

Personally- opinion only, wait it out a little bit longer.

I think rates will not move either way for a few months yet but my crystal ball was from Woolworths so my guarantee is invalid.

stolt

i would wait alittle longer if i was in your shoes aswell. if your at 2.99% i'd be overpaying as much as possible to get the LTV% down. I cant see the rates shooting up to be honest until the back end of this year. This is coming from someone that has just snagged the A&L 3.99% no fees deal that was closed down on monday.

dimbo61

I would take the 5 year fix as 4.69% is a good rate for someone with a LTV of 95% and overpay over the next 5 years