Mortgage Advice

haras_nosirrah

You say you are a panicker - the question you have to ask yourself is if the rates don't go up and I have fixed would I be kicking myself that I have paid more or would you be greatful that you haven't had to worry about it for 5 years

Personally I would go for the 5 year and reduce the term so you are paying the same as you are now i.e. instead of 23 years left you have 18 or something similar. That way you are reducing your mortgage and loan term without even thinking about it as you are paying what you are used to. Your balance will therefore be substantially lower in 5 years which will give you access to better rates etc. Just my opinion

dimbo61

Are you planning on staying in the property for the next 5 years at least? Is it big enough?
Are you married or hev kids? How is your job and might you have to move around ?
So many things that we dont know about you !!!
I am at the end of a 5 year fix TODAY and will be going onto a tracker deal which my mortgage reverted to because my lender cant give me a better deal so what does your mortgage revert to 2.5% SVR ?
4.79% fixed for 5 years is a good deal if you are staying put? but I would reduce the term so you are paying the same as you have been for the last 2 years and if you can then overpay that as well ( but I dont know your finances?) so that in 5 years your LTV would be below 60%
Only my views GOOD LUCK

egor110

I'm in a similar situation to you, my fix 6% ended nov 2009 and i'm now on a 2.50% mortgage rate.
Although the lower rate has allowed me to overpay i'm going to get a 10 year fix @ 4.99%.
My reason for doing this is that if the intrest rates go up to 1.25% (or including my banks rate of 2%=3.25%) by dec and if it goes up 2.75% (including my banks 2% rate that makes 4.75%) that would be almost what i can get a 10 year fix for now, however if wait until 2012 you can bet the rates for the 10 year fix is going to be a lot more.
Lastly i looked back over the last decade at the intrest rates from jan 2000 to jan 2008 the lowest they were was 3.75% (dec 03) and the highest was 6% (dec 2000) it's only 2009-2010 where it's dropped below 2% so i think rates will be heading back up to what's a more normal rate.