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FTB Fix for 2 years, 3 years or 5 years?

We have had an offer accepted on a house we wish to buy. We have a 10% deposit and so the rates are high - between 5.99% and 6.39%. There would be £40 difference in the monthly repayments and the arrangement fees are equivalent to one another.

What would you do? Fix for 2 years, 3 years or 5 years? We have gone through all the options and we seem to agree that the 3 years is a good balance. We could remortgage in 3 years with 5% paid off and perhaps in hope, 5% house price rise, therefore 80%. Ok, it would all depend on what rates are then, but that's what I am wondering, where do people think fixed rates will be in 2 or 3 years?
A big thank you to everyone who contibutes to the MSE forums :T

Comments

  • Did you see today's inflation figure? Go for 5 years.
    Act in haste, repent at leisure.

    dunstonh wrote:
    Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.
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