3 year or 5 year fixed rate?

Merlin139

I have just gone for a 5.34% 5 year fixed rate with the Britannia (No Fees and they pay me £150.00 because I belong to Usdaw Union) to start on 01 feb 07 when my currant 3 year fixed rate ends with YBS.

We only have 42K left to pay on the mortgage but will take it out over 20 years but intend to overpay to the max of £499.00 each month.

We had decided to take it out over 10 years and overpay by £330 per month.

Both of these options will give us a Mortgage free date of Mar 2012 5 years and 1 month after we start the Britannia mortage.

The point of fixing for us means that we know what the paymant will be for the next 5 years and providing we can overpay as we want too we will pay off the mortage 1 month after the fixed rate ends. (The longer period of the mortgage allows extra security if anything unexpected happens.) We have managed to overpay 76K in the last 3 years Far better paid job than I have now.

mbailey

Merlin139 wrote:

I have just gone for a 5.34% 5 year fixed rate with the Britannia (No Fees and they pay me £150.00 because I belong to Usdaw Union) to start on 01 feb 07 when my currant 3 year fixed rate ends with YBS.

Just out of interest did YBS not offer you anything as an existing customer? They seem to have good rates at the moment but only allow 10% repayment per year. I guess you are paying it off faster than this so this is no good for you?

Merlin139

mbailey wrote:

Just out of interest did YBS not offer you anything as an existing customer? They seem to have good rates at the moment but only allow 10% repayment per year. I guess you are paying it off faster than this so this is no good for you?

I spoke to the YBS and they could not do anything for me until 2 dec 06 ,60 days before my fixed rate was due to finish. I wanted to get something in place before possible rate rises this month.

The service we have had from the YBS (Branch in particular) in the last 3 years has been second to none. We so much wanted to stay with them and as you say 10% over payment would not have been enough for us.

The real key for us is to if possible clear the mortgage in just over 5 years.

mbailey

Merlin139 wrote:

I spoke to the YBS and they could not do anything for me until 2 dec 06 ,60 days before my fixed rate was due to finish. I wanted to get something in place before possible rate rises this month.

The service we have had from the YBS (Branch in particular) in the last 3 years has been second to none. We so much wanted to stay with them and as you say 10% over payment would not have been enough for us.

The real key for us is to if possible clear the mortgage in just over 5 years.

Ok - that makes sense.

I am in the process of remortgaging with YBS now, so to hear you have had good service is very good news for me!