5 or 10 year fixed rate?

Hillary

I've recently been offered a five year 4.74% fixed rate on my mortgage and a ten year 5.29% fixed rate. My mortgage renewal comes up in March. Here's the dilemma...given our unique economic climate, are these rates likely to be the best we'll ever get, so go for the ten year deal? Or would the 5 year fixed be the best option? Any expert advice/help gratefully received.:think:

opinions4u

Toss a coin.

If I didn't have any expectations of paying the debt off early and wanted a fix, I'd go for the 10 year option as long as it had a portability clause (and the option to overpay a little).

But it's a genuine tight call.

Pincher

The are both decent value, and cost the lender the same, presumably.

The thing to consider is, whether the lender is offerng you a good deal to get off the old contract, which may have a very low tracker rate when your current deal ends. If there's a tight deadline, be suspicious.

ray123

Which lender is offering the ten year fixed at 5.29?

You could also check out First direct: Fee Free* Base Rate tracker Mortgage - up to 65% Loan To Value (LTV)
Tracks the Bank of England Base Rate plus 2.39%, currently 2.89%
http://www1.banking.firstdirect.com/1/2/mortgages/our-latest-mortgage-offers

There is a lot of uncertainty regarding the base rate at the moment, so the tracker above may be too risky.