Variable or Fixed? Through Abbey

Japtastic_UK

Just topping up our mortgage because we are moving up and adding an additional 100k, our current deal is 1.2 above base rate tracker so getting a cracking deal and this part will continue until Jan 2011, these are the three deals they are offering for the additional borrowing:

£299 fee 4.24% variable
or
£995 fee 5.99 fixed for 3 years
or
£495 fee 5.84 fixed for 5 years

Opinions on what you would go for please

_Andy_

It's a personal choice - what I or someone else might for isn't relevant as our circumstances and needs will be different.
Do you want/need the stability of a fixed rate?
Will the variable payments still be affordable when base rate rises?

Japtastic

I realise that but wondered what other people would do, put it this way, if money wasn't a huge issue unless rates went ridiculously high would you take the variable? It would have to increase nearly 2% to come in line with the 5.84% rate and I would be roughly £100 a month better off. I'm not that clued up on variable rates, some one mentioned when the BOE rate goes up 1/4 % then Abbey raise it 1/2% meaning it would still have to increase 4x times if we assume the BOE will raise 1/4% each time and Abbey use the 1/4 to 1/2% method. This variable deal BTW can finish at the same time as my old mortgage so in a year 1/2 all the mortgage will need to be changed on to the same product.

These are my thoughts, every one agree? Have anything to add/help? Try looking at it without thinking about personal circumstance but purely a business decision.

Thanks