Fixed Vs Variable on mortgage

stevos_uk

Hi,

I am currently applying for a mortgage of 75% LTV, unfortunately my wife has 3 defaults that are due to end in Jan 2012. I have been turned down by the large high street banks but have been offered a few deals from Beacon (who accept defaults).

1) 4.9% Variable with a three year tie in.

2) 6% Fixed for two years.

I do not know what to go for? any advice on Fixed Vs Variable???

yelf

is 1) the SVR?

You need to decide whther you think interest rates will rise much in the next 2 years. Based on the BOE's comments today I doubt they will.

stevos_uk

Yes 1 is the SVR..

aimzrabbit

stevos

read the horror stories on redstone mortgages they will collect your direct debit on your beacon mortgage once complete and there is some feedback that suggests redstone are known for increasing interest rates willy nilly as your variable will be linked to libor which reviews every 3 months i think but im no expert

but I cant find much feedback on redstone for 2009

we have just taken the 2 year fixed deal at the higher rate 24 payments and bye bye

hope this helps