what should I do Fix or variable

bullybear

I am in a pickle what should I do I have a 43000 mortage left over 5 years and have been offered 2 deals

1) 2.49% life time tracker = 1.99% + Bank of england base rate cost £762

or

2) 2.95 fix for 2 years cost £599 cost per month £771

what do people think

Peelerfart

If those are the only two deals on the table then I would say fix, sit back and watch the world go by, and wait for that MF moment.

getmore4less

Whats the followon rate on the fix?

Debt_Free_Dreamer

It's a no brainer. It ain't gonna get cheaper as interest rates are not going to go lower.

The difference between the fix and tacker are not great enough to warrant the gamble that they stay the same for a long time.

Go with the fix.

Or get a better tracker rate.

bullybear

The two deals are with my current lender coop and I would revert at the two years to the svr. The cost if the base rate stayed the same would be £800 pounds extra.

I worked out that 0.5% costs me approx £10 per month.

I cant decide.

wymondham

£599 seems a lot to fix, or am i getting old??

All hinges on which side of the table you sit - "interest rates will stay low for years as this is the current 'norm'" , or "these rates are historically low and will only go up".......

I would personally hold off any financial decision now until after the impending budget, when things might be much clearer....

Evilm

bullybear wrote: »

The two deals are with my current lender coop and I would revert at the two years to the svr. The cost if the base rate stayed the same would be £800 pounds extra.

I worked out that 0.5% costs me approx £10 per month.

I cant decide.

I know that the Fixed is a little more expensive but the security of knowing exactly what you need to pay is worth it. You are not likely to keep the low rate on the SVR for two years and if you still have enough debt on the mortgage that you don't feel comfortable you could always try for another fixed then.

dimbo61

Why not take the "5 year 3.99% fix" fee £999 with the coop and then you wont have any worries about mortgage rates in 2/3/5 years as you will be mortgage free!!!!

dimbo61

If you paid the £999 fee it would cost you about £791.72 a month for the next 5 years!

dimbo61

Thats £20 a month more than the 2 year fix or £1200 over 5 years and how much will you pay in fees for the next deal !!

bullybear

Hi thanks for all ure advice I decided to take the 3.99 fixed for 5 years and the cost was only £599 because I have a mortage with them. also will still overpay so will end my mortage in approx 4 years with my overpayment fund.

thanks