We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Decision time!
gooner71
Posts: 12 Forumite
I have offers of:
5 yr Capped product, 2.49% over base rate with a cap of 5.99%
5 yr Fixed product, 4.49% for the period.
Anyone got a crystal ball to tell me whether BOE rates will stay below 2% for the next couple of years? If so, the Capped product would work out much cheaper.
Please help!
We're borrowing quite a hefty sum, so the reason for both of these products is to manage our worst case scenario. At 5.99% I'd be paying £250 per month more than the Fixed product. However at the moment, the Capped product would work out £200 per month cheaper.
5 yr Capped product, 2.49% over base rate with a cap of 5.99%
5 yr Fixed product, 4.49% for the period.
Anyone got a crystal ball to tell me whether BOE rates will stay below 2% for the next couple of years? If so, the Capped product would work out much cheaper.
Please help!
We're borrowing quite a hefty sum, so the reason for both of these products is to manage our worst case scenario. At 5.99% I'd be paying £250 per month more than the Fixed product. However at the moment, the Capped product would work out £200 per month cheaper.
0
Comments
-
I'd go for the capped but pretend I was paying 5.99%. I'd either overpay the difference, or save it in order to make a capital repayment once rates go up.0
-
In view of the reports of likely interest rate increases in the near future, in response to 17 month high inflation figures, I decided to go for the fixed option.
At least I know what I'll be paying in 4 years time!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.5K Banking & Borrowing
- 254.1K Reduce Debt & Boost Income
- 455K Spending & Discounts
- 246.5K Work, Benefits & Business
- 602.9K Mortgages, Homes & Bills
- 178K Life & Family
- 260.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards