3.89 fixed for 3yr or 4.44 fixed for 5yr?

dansep

Hi All

My existing 3 year 4.74% fixed rate mortgage with Britannia comes to an end in September. The amount remaining is around £140K with 22 years left on it. They have offered me a 3 year fixed rate of 3.89% with only £599 fee.

Looking around I have managed to get a mortgage offer for 5 year fixed rate at 4.44% with HSBC. Again, the fee is £599.

With the Brittannia I can take the loan over 20 years with the amount be around £850pm - roughly the same as I am paying at the moment.

I'm undecided what to do. So I'm wondering what other people in my position would do.

Thanks,

Dan

Thrugelmir

dansep wrote: »

Hi All

My existing 3 year 4.74% fixed rate mortgage with Britannia comes to an end in September. The amount remaining is around £140K with 22 years left on it. They have offered me a 3 year fixed rate of 3.89% with only £599 fee.

Looking around I have managed to get a mortgage offer for 5 year fixed rate at 4.44% with HSBC. Again, the fee is £599.

With the Brittannia I can take the loan over 20 years with the amount be around £850pm - roughly the same as I am paying at the moment.

I'm undecided what to do. So I'm wondering what other people in my position would do.

Thanks,

Dan

As the product fees are the same take the longer term fix with HSBC.

Fixed rates have risen sharply recently. So worth locking in for a longer period.

dimbo61

HSBC allow you to overpay my 20% which may or may not be of use to you.
Think long term you still have 20/22 years to go on your mortgage unless you can overpay each month.
Good Luck in whatever you decide.

Archlever

Hi,

I'd suggest the longer fix. Agree with the OP about interest rates rising sharply.