Current Fixed Rates...

kossohead

Gorgeous_George wrote: »

If YOU think you may need to move within a few years, buy the house that you may need to move to. Only ever buy a house that you intend to keep for 10+ years.

Remember, he is a mortgage adviser and has no idea where interest rates will go next.

GG

We intend to stay in the house at least 7-10 years. Got 16 years left on mortgage.

I know how long is a piece of string but which would you guys go for?

fixed at 2.75% for 2 years(£700 fee) or
fixed at 3.99% for 5 years(£0 fee)

kossohead

kossohead wrote: »

We intend to stay in the house at least 7-10 years. Got 16 years left on mortgage.

I know how long is a piece of string but which would you guys go for?

fixed at 2.75% for 2 years(£700 fee) or
fixed at 3.99% for 5 years(£0 fee)

*ANYONE, WHAT DEAL WOULD YOU CHOOSE?

The 5 year works out an extra £95 per month?

getmore4less

I would go for a lower cost lifetime tracker or offset and overpay.

dwsjarcmcd

As a personal opinion I would go for the longer deal. The reason is because while you may be paying £95 more now, you could be paying alot more in 2 years time, if rates go up. You will also more than likely need to pay another fee again.

As has been said above, if you think rates will stay low then a tracker is worth considering. Have a look at First Direct

Just my take on it

originalmiscellany

I'd do a 5 year, and try to pay off where possible overpay... It could be better that way to get the guarantee of the mortgage long term, rather than a lower short term fix, but unsure in the long term what will happen.

It's just an opinion though

Thrugelmir

getmore4less wrote: »

I would go for a lower cost lifetime tracker or offset and overpay.

Total agreement. Interest rates longer term are only heading one way. So repaying capital as quickly as possible is the best way of minimising interest charges.

tidyfinance

Kissohead
I'm in a similar dilema.
I'm about to re-mortgage. Either re-mort with Britannia, or look to go elsewhere.

House valued at 266K, want to re-mort to 103,000K for 10 years.
Fixed (I feel safe with these), or tracker?

I think I'll get a few quotes or a couple of IFA's to see what they come up with.
I gues that rates will only go up in the coming year/s though???? Hmm.

Gorgeous_George

kossohead wrote: »

We intend to stay in the house at least 7-10 years. Got 16 years left on mortgage.

I know how long is a piece of string but which would you guys go for?

fixed at 2.75% for 2 years(£700 fee) or
fixed at 3.99% for 5 years(£0 fee)

Both have their merits. For me, a five year fix would mean I wouldn't be stressing over a remortgage in 2012.

I don't think rates will move much over the next 5 years so the 2 year deal could be an option but there is a risk that...

1. rates could rise
2. house prices could crash (and you could be in negative equity)
3. mortgages become more difficult to source
4. your income could fall

I'd take 5 years at 3.99%.

GG

dimbo61

Also have a look at YBS who do 5 year offset fixed deals !!
Ability to overpay/save into the offset as much as possible

Thrugelmir

kossohead wrote: »

*ANYONE, WHAT DEAL WOULD YOU CHOOSE?

The 5 year works out an extra £95 per month?

How do you know what the interest charges you will incur in years 3, 4 and 5 are going to be?