fixed rate ending: advice required

gavin_mcp

hi
my 2 yr fixed rate deal ends next month , i have spoke to RBS and the have said i can go onto the svr @ 4% or for a fee of £199 could go onto any of these offers

4.29% for two years
5.29% for five years
5.99% for ten years
the house cost £238000 in dec2008 , we have £200000 left to pay over 23 years, i think we most probably are in neg equity and i fear if i dont take a long fixed deal i could be up !!!! creak if the interest rates rise in the next few years pushing up the next fixed mortgage i would be looking at ( prefer fixed as have a young family and need to know where we are at )
could afford to over pay £200 a month if we go onto svr if it stays below 5%
any advice most welcome
and sorry for my long first post

Gavin

Cannon_Fodder

Two years is looking like the danger time for rates.

After the election, after the QE (money printing), when recession has been replaced by growth = inflation, when commodity inflation could return - as the world exits recession there will be higher demand for Oil, etc...

Throw in the uncertainty on how we will repay massive Govt debts, higher taxation could curtail your spare cash...etc.

Personally, I'd go for 5-years minimum. 5.29% should leave leeway to overpay, perhaps £100...?