Britannia 3yr or 5yr fix?

alesanamurphy

My current Britannia 3yr fix ends in December. It is 4.99%.

Britannia wrote to me recently saying I could switch products now to a 3.99% fix FEE FREE, but I had to decide on whether I took it for 3 or 5 years. (the offer was for current Britannia customers only)

My house is valued at £230,000 and my my mortgage is currently £108,000.

Obviously I will make a significant saving, but I just don't know whether the 3 year fix gives me more flexibility, or whether the 5 year would be better to ride out the current economic problems?

Which one would you go for?

Thanks for the advice.......

supersunshine

Personally I would go for the 5 year option as 3.99% is a really good rate and still low compared to the bank of englands base rates in the last few years.

Just found this really interesting document which notes the rates back to the 1970s and it hardly ever goes below 3% and then your bank would always add a percentage onto that.

http://www.bankofengland.co.uk/statistics/rates/baserate.pdf

You lucky thing - if only they would call me with that rate :-(

amancalledmartin

I've just tied in to a 5 year fix. Like everything, it's a gamble, but I think the rates will only have just reached 4-5% in a couple of years and trying to get a fixed rate in 2-3 years time you're probably going to have to tie in at 6%+. But who knows?!

supersunshine

Doh - sorry forgot to add the link of the Bank of England rates since the 1970s - interesting reading! Added it above now.

Ivrytwr3

i would definately go for the 5 year fixed; that's a very good rate! One question though, we are coming up to our fixed rate ending in Jan 10, will our provider (A&L) get in touch with us and offer us a deal??!!!

Dando_Soral

we've had a similar offer, currently coming to the end of our 4th year of a 5 year fixed rate
currently 4.89% fixed, £537.70 per month

offering us the following
3 or 5 year fixed 4.29% £507.62
10 year fixed 4.59% £521.36

What do people think?
Personally I don't think they're exactly killing themselves and that mortgage rates aren't likely to go up to those levels within the next year
Only prob with getting a new deal atm is the possibility of having to pay another deposit to get a good rate - can't afford to be putting down even 10%

Econimiser

Supersunshine-thanks for the BOE rates doc, a question often and asked and intresting to see the trends,

robbiecaratiger

alesanamurphy wrote: »

My current Britannia 3yr fix ends in December. It is 4.99%.

Britannia wrote to me recently saying I could switch products now to a 3.99% fix FEE FREE, but I had to decide on whether I took it for 3 or 5 years. (the offer was for current Britannia customers only)

My house is valued at £230,000 and my my mortgage is currently £108,000.

Obviously I will make a significant saving, but I just don't know whether the 3 year fix gives me more flexibility, or whether the 5 year would be better to ride out the current economic problems?

Which one would you go for?

Thanks for the advice.......

Me, i'd dive into the 5 year one like there was no tomorrow.

JAZ63

Hi op
Im very interested in this rate you have been offered,but cant find it anywhere on the Britannia website.
I can only see a 3yr fixed rate at 3.89% with a £545 fee attached .
Is the offer you have been given shown anywhere ,we are existing Britannia customers and would jump at chance at a 3 or 5 yr fix at those rates
regards Jazz

cal1_2

alesanamurphy wrote: »

My current Britannia 3yr fix ends in December. It is 4.99%.

Britannia wrote to me recently saying I could switch products now to a 3.99% fix FEE FREE, but I had to decide on whether I took it for 3 or 5 years. (the offer was for current Britannia customers only)

......

After reading this I telephoned Britannia. Your offer is only for a 'select few' Britannia customers:rolleyes:. They are going to ring me back as they sales team close at 8pm. The above deal is not on their website and I have to say I'm not impressed they only offer this deal to 'some' customers (I'm happy for your alesanamurphy:D). However,I've been a loyal customer with them for 17 years, my 10 yr fix is coming to an end in June and the best I've been offered for a 5 year fixed is 4.49% with a £549 arrangement fee or 4.24% with a £999 arrangement fee :mad: I'm not impressed. I hope they can let me know why only a few select customers are being offered this deal. By the way, my house is worth about 190-200K, mortgage needed approx £70K.

x

JAZ63

Wonder if we are special enough !! , will be phoning them first thing monday morning to find out if we are one of the select few ..... not holding my breath though . Thanks cal1 for finding out this info
regards Jazz