Help! Which deal to go for.

Azure

I have been offered the following with my existing mortgage provider:
- 2 year fixed at 3.29 + £199 fee
- 3 year fixed at 3.34 + £699 fee
- 5 year fixed at 3.99 + £99 fee
- 10 year fixed at 4.69 + £99 fee

I have £67,000 left to pay on an 18 year mortgage.

Any advice would be much appreciated as to which might be the better option.

real1314

fixed rates are all about your own circumstances. They are what determines which deal you should probably choose.

dimbo61

Lots of things to look at!
Are you planning to stay in your home long term
Can you afford to increase your mortgage payment?
Would you like to be mortgage free ASAP?
The £67,000 mortgage over 10 years on the 10year fix at 4.69% works out at £700.53 a month.
You would pay £17,000 in interest and be mortgage free 8 years early.
Dont know if you could afford that or want to pay that amount each month just an idea! GOOD LUCK

Azure

Thanks for the responses. I had not really considered the 10 year mortgage seriously but it does look attractive if you can overpay. I am currently on 4.99 and although will be looking to overpay when renew unfortunately could not afford the £700 a month. We would like to move at some point but I don't think will be in the near future. The bank did say the mortgage was portable if we did decide to move. I find it so difficult as there are so many unknown quantities.

socrates

Azure wrote: »

I have been offered the following with my existing mortgage provider:
- 2 year fixed at 3.29 + £199 fee
- 3 year fixed at 3.34 + £699 fee
- 5 year fixed at 3.99 + £99 fee
- 10 year fixed at 4.69 + £99 fee

I have £67,000 left to pay on an 18 year mortgage.

Any advice would be much appreciated as to which might be the better option.

Just looking from the outside in - most people on the mortgage board have been trying hard to get a 5 year fix for 3.99% and have been paying a much higher fee than £99.

Perhaps that says something....

Azure

Thanks Socrates. Your thoughts on this are much appreciated. These mortgages are with RBS if anyone is interested but I am an existing mortgage and banking customer with them and have a low LVT.

Rockporkchop

I think that the 5 year fixed at 3.99% with only £99 arrangement fee sounds great. I'll take it!!

Gorgeous_George

Azure wrote: »

I have been offered the following with my existing mortgage provider:
- 2 year fixed at 3.29 + £199 fee
- 3 year fixed at 3.34 + £699 fee
- 5 year fixed at 3.99 + £99 fee
- 10 year fixed at 4.69 + £99 fee

I have £67,000 left to pay on an 18 year mortgage.

Any advice would be much appreciated as to which might be the better option.

It isn't so easy comparing mortgages over differing fixed periods. You need to make a guess as to where interest rates will be in 2, 3 5, and 10 years.

Historically, all the deals are good but the 10 year fix wins hands down for me. No worries for ten years.

Add the arrangemnet fee to the mortgage and your payments are £460.57 for ten years followed by unknown repayments for eight years. Increase your repayments to £701.57 and the mortgage is cleared in ten years. How good would that feel?

GG

Azure

Thank you for all your thoughts and suggestions. Although thought of being mortgage free 8 years early if you overpay on the 10 year fixed does sound quite tempting, I do not have an extra £241 a month to overpay every month so I have reserved the 5 year fixed.

Gorgeous_George

On the 5 year deal, your payments will be £435.93 for 5 years.

After 5 years you will owe £52,992 and rates would need to rise to 12.84% for your payments to rise to £700.

Good luck.

GG

dimbo61

The 3.99% five year fix is a very good deal and cheaper than what you are paying now ?
If you cant afford to pay the £700 a month to clear the mortgage in the 10 years then why not try to overpay a little each month even £100/120 a month will reduce your debt and therefore increase the equity in the property giving you a biiger deposit for your next house !
Having a 40% deposit will then give you the best deals for the next property. GOOD LUCK