Which one?

angela24_2

Hi everyone

Which would you consider the best way to go?

5 Yr Fixed at 4.35 over 20 years - £1074

Or as above but over 25 years - £941

jjwhittle1981

It all depends on if you can aford the payments for the 5 years. Plus dont forget you have no idea what interest rates will be like in 5 years, could you afford a big increase?

JAWS8

Hi Angela,
Have you looked on The Post Office website. They will do a 5yr fixed at 4.15, then you could go for the 20yr deal;)

angela24_2

Yes I did look at the Post office.
Was thinking of doing the 4.35 deal thoe..only a small difference in monthly payments and no legal fees etc.

dimbo61

If you can afford the £1074 payment each month then take the shorter term as you will have paid more of the mortgage off over 5 years and you may be allowed to overpay as well.
If in 5 years time rates are say 10/11% you can always extend the term by say 5 years to reduce the payments.

angela24_2

Thats true. Thanks for that.

dimbo61

Taking the mortgage over 20 years means you would still owe £141,847 after 5 years.
Taking the mortgage over 25 years means you would still
owe £150,732 after 5 years