First time buyers, 5 yr fixed or 2 yr tracker??

smiddy_2

Im in the same boat as you, applying for a mortgage on Friday and went for the 5 year fix. It wasnt with Accord by any chance was it? Sounds very similar - 4.54% and £1900 fees.
Reasons are this is my first house and to fix it for that long enables savings to be rounded up should interest rates go up significantly over the next few years etc. Also you then know what you have to spend on your lovely new house minus mortgage payments!

shamo

Hi Smiddy,
yes that's the one our advisor pointed at us. However our set up fee is £2000??
Have you looked at Britania's 5 year fixed to see how it compares also post office have one at 4.65% but not sure on the APR.

Does Accords come out on top for you then?

smiddy_2

Yes it was the same one then. Im applying for approx 3.5 times salary but have a look at my thread 'What are the reasons a mortgage might be refused' on here. Getting a bit worried now..................

I have a Chelsea agreed in principle and despite it being £3k more it is sounding the better option.

JA1000

Are fixed portable? Tracker everytime, a lot can change personal circumstances in 2 years let alone 5

sammyjammy

Personally I would take one of the fixes but as they are 4 and 5 yrs respectively you need to consider how your circumstances might change in that time and how that might change your requirements.

You don't have to be a genius from Goodwill Hunting to work out the related costs, find a mortgage calculator and work out the monthly payments over the related terms to see which is financially best. How much does a saving of .45% save you over 4 years? If its more than £2000 then I would go with the five year fix.