Which fixed rate mortgage? 5-year (4.99%) or 7-year (5.39%) - You decide!

steve237

I have been mulling this over for a while and keep changing my mind!

I come to the end of a tracker (0.16% below base rate) with Abbey in a couple of weeks, at which point I revert to the SVR of 4.24%.

I have decicided to fix for the long term, and would prefer it to be 7-10 years. Unfortunately the 4.99% 10-year Abbey deal is only open to new customers. So, after I have made a capital repayment of 5% of my mortgage balance (£6880) giving me an LTV of 78%, my options with Abbey are as follows:

5 years at 4.99%
7 years at 5.39%

Both incur only a £125 fee.

I appreciate this is ultimately my decision and I should base it on what I can afford, but I wondered what other people would do in my position (and I know there any many out there in the same boat right now!)

I have the papers to sign on the 7-year deal, but they expire if I don't sign and return within 14 days (which ends on Saturday). My thinking so far has been that in 5 years the base rate will probably be rather high and it would prob be good to be locked in for another 2 years... but who really knows... Now I am wondering whether to go for the 5 year deal instead.

Over to you folks!!

andrewmp

5 Year Fix at 4.99% - this should be long enough to weather the storm

I'd go for the 5 year.

Saying that, I'm fixed for 25 years!

beecher

5 Year Fix at 4.99% - this should be long enough to weather the storm

I thought 5 year as it will cost you slightly less each month. They're both pretty good deals though, and if you'd prefer not to have to think about the mortgage for the next 7 years, then go for that one.

Bit of a wishy washy answer that

steve237

Update - just spoke to Abbey to check no different fixed rates on offer.

As of 9pm tonight, they told me all 3 year, 5 year and 7 year fixed deals are being pulled from their product range.

An indication that these good long term fixed rate deals aren't going to be offered by lenders for much longer!

Luckily I have the paperwork which they have to honour...

Still wondering whether to request 5 year paperwork while the deal is still available...

beecher

5 Year Fix at 4.99% - this should be long enough to weather the storm

steve237 wrote: »

Update - just spoke to Abbey to check no different fixed rates on offer.

As of 9pm tonight, they told me all 3 year, 5 year and 7 year fixed deals are being pulled from their product range.

An indication that these good long term fixed rate deals aren't going to be offered by lenders for much longer!

Luckily I have the paperwork which they have to honour...

Still wondering whether to request 5 year paperwork while the deal is still available...

If you've only got half an hour, won't you have to move fast if you do?! If you're sticking with the 7 year deal, I'd get that in the post pronto.

steve237

beecher wrote: »

If you've only got half an hour, won't you have to move fast if you do?! If you're sticking with the 7 year deal, I'd get that in the post pronto.

They have said the 14 days isn't set in stone and as long as I return the signed forms this week, it's fine.

The monthly difference between 4.99% and 5.39% is £30 on repayment... I am still toying with the idea of getting the paperwork for the 5-year fixed rate. 15 minutes until the mortgage offices close!!

TuftyMatt

I spent ages last week looking at 3,5,7 and 10 year deals and in the end went for a 3 year fix at 3.89%

The reason being was I could not stomach paying a higher rate than I am now when my deal ends in late August at a time when the BOE base rate is at its lowest in history.

thefourbennetts

I am just about to go with Abbey for the 7 year at 4.99. However, if I were you I would defo go for 5 years. Noone can say what will happen after 5 years and at 7 I run the risk of being worse off if the rates go down which is why I am not going for the 10 year fixed with abbey at 4.99. I think 5 years is still a long period of piece of mind and if you dont have the £995 completion fee, you can just refix at that time. Worse case scenario you may lose out if rates are so much higher in 5 years but best case scenario you will save or be the same off. I wouldnt pay above 5% at present for any fixed deal, it seems too high. Good luck though.

nrsql

I keep being tempted by first direct 3yr fixed offset at 4.09%.
I'm currently on variable .89% above base = 1.39%

The FD mortgage would be for as much as possible so I could transfer a btl mortgage on to it in a years time when there are no charges (already transferred one) and maybe buy another rental property.

So - when is the boe rate going to hit 3.2%?

steviehud37

5 Year Fix at 4.99% - this should be long enough to weather the storm

steve237 wrote: »

Update - just spoke to Abbey to check no different fixed rates on offer.

As of 9pm tonight, they told me all 3 year, 5 year and 7 year fixed deals are being pulled from their product range.

An indication that these good long term fixed rate deals aren't going to be offered by lenders for much longer!

Luckily I have the paperwork which they have to honour...

Still wondering whether to request 5 year paperwork while the deal is still available...

I spoke to Abbey this afternoon and yes they are withdrawing some deals but not every fixed rate deal
The lady said i should check web site Wednesday morning for a update

I have arranged a meeting with abbey on Thursday
They offered me 4.99% Fixed Rate 5 Years No fees-New customer

Hope this helps

siliconbits

Abbey rates went up