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Fixed rate 2yr or 3yr
crowdedhouse
Posts: 54 Forumite
Hello
We've decided on a fixed rate mortgage but now stuck on the decision of a 3yr or 2yr. As you know the 2yr is a lot cheaper and we plan to extend our house next year so we'll be borrowing more next year to fund this. This will increase our value and we'll end up with a lower LTV so better rates in the future and less mortgage.
Is it wise to tie us in to a 3yr while the rates are low (they can only go up) or hope that the lower LTV will give us good rates after the two years are up (when the extension is complete) as they could be a lot higher by then. hmmm decisions decisions.
Any guidence from anyone with the knowledge!
We've decided on a fixed rate mortgage but now stuck on the decision of a 3yr or 2yr. As you know the 2yr is a lot cheaper and we plan to extend our house next year so we'll be borrowing more next year to fund this. This will increase our value and we'll end up with a lower LTV so better rates in the future and less mortgage.
Is it wise to tie us in to a 3yr while the rates are low (they can only go up) or hope that the lower LTV will give us good rates after the two years are up (when the extension is complete) as they could be a lot higher by then. hmmm decisions decisions.
Any guidence from anyone with the knowledge!
0
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