Arggg! What fixed rate term would you choose?

turramin

Hello,
I've recently built a house and I'm about to transfer a £175 k overdraft to a mortgage, It's my first mortgage and I'm pretty sure I want a fixed rate for a while , should I go for 3 or 5 years?
It costs £60 a month more for the 5 year term, i'm not too bothered about this but I really don't know whats best.
Anyone got a crystal ball?
What would you do?
What situation am I likely to be looking at in 3 or 5 years?
Thanks!

turramin

Lender - Bank of Scotland/Halifax
Rate after fixed term is 3.5% Standard Halifax variable rate.
5 year fixed - 4.44% - £960 pm
3 Year fixed - 3.84% - £900 pm

I guess I just want to know what others would do in my situation, after the fixed rate is over the plan is to get it paid off as quickly as possible using a "one" account or similar product.
I want a bit of mortgage stability at the moment though as we're looking to start a family and invest money in a business in the very near future.

Yorkie1

I am a cautious person and therefore went for the longest decent fix I could find. I don't think rates are going up significantly in the next couple of years but after that it's less certain. Your 5 year fix is at a lower % than my current 4 year fix and you don't have to pay remortgage fees after 3 years.

Assuming you're not going to want to exit the mortgage within the tie-in period for any reason, I would go for the longer one, but that's just my personal view.

turramin

Yorkie, That's probably the way I've been leaning I think.
5 year plan seems a good idea.

getmore4less

turramin wrote: »

Lender - Bank of Scotland/Halifax
Rate after fixed term is 3.5% Standard Halifax variable rate.
5 year fixed - 4.44% - £960 pm
3 Year fixed - 3.84% - £900 pm

I guess I just want to know what others would do in my situation, after the fixed rate is over the plan is to get it paid off as quickly as possible using a "one" account or similar product.
I want a bit of mortgage stability at the moment though as we're looking to start a family and invest money in a business in the very near future.

Don't touch the one account with a bargepole.

Allthough not a fan of the products due to the high tracker follow on rates what about a fixed offset from the start.

First direct and YBS do them

BTW don't see the rates you quote onthe BOS/halifax site they are higher.

dimbo61

I am also a big fan of offset mortgage and both FD and YBS have very good 5 year fixed deals at the moment IF you have the LTV below 75% and good credit score

jackieblack

Yorkie1 wrote: »

I am a cautious person and therefore went for the longest decent fix I could find. I don't think rates are going up significantly in the next couple of years but after that it's less certain. Your 5 year fix is at a lower % than my current 4 year fix and you don't have to pay remortgage fees after 3 years.

Assuming you're not going to want to exit the mortgage within the tie-in period for any reason, I would go for the longer one, but that's just my personal view.

my thoughts exactly

turramin

getmore4less wrote: »

Don't touch the one account with a bargepole.

Allthough not a fan of the products due to the high tracker follow on rates what about a fixed offset from the start.

First direct and YBS do them

BTW don't see the rates you quote onthe BOS/halifax site they are higher.

It's a discounted rate I got quoted as I have a current account and a self build account with BoS

Cheers for the heads up regarding the "one" account, I'll look into the fixed offset as my LTV is 63%