Deciding on a mortgage.

VKay

Hello , I'm struggling to decide between two mortgages with Abbey.

2 yr fix at 4.09% = £540 ish per month

3 yr fix at 4.78 = £580 ish per month

We are borrowing £100k on a £150k house and our monthly income combined is approx £3,200k but we are in our early 30s and may have children (we don't at present). My income is larger (2k pm) and i am female so it'd be my salary that dropped away.

Financially i would describe us as cautious.

The first one is tempting but rates have one way to go!

I know you can't tell me which is 'best' but am keen to hear people's opinions

Mrs_Bumble

What are the arrangement fees for both?

Do you have plans to move/sell in 2 years time?

Do you think that the patter of tiny feet is more likely to come in the next couple of years?

If so will your maternity pay/partners salary cover a remortgage in 2 years?

Do you want to incur costs again in 2 years time for the process of remortgaging?

Out of interest if you are hoping for the patter of tiny feet does 2 or 3 years give you enough stability?

It really rides on what your plans are for the next 2/3 etc years are?

Catanddogs

I would go for the 3 year give the rates chance to go up and hope they will come down again in that time.

benood

If I was going for a fix 3 years sounds about right. As you say it will give you security - you could have 2 sprogs by then!

VKay

Thanks for your comments. It's useful!

Mrs Bumble, the arrangement fee for each one is £999. With £250 cash back on completion. The val survey is free which is attractive to us. We will pay for a further survey.

Starting to lean towards 3 yr fix. looked at 5 yr but they were all over 5% and it seemed quite high to fix at. Maybe we'll regret that- who knows?!