Mortgage Renewal

oranget1

I bought a house 2 years ago, and had a Mortgage for £88950 (30 Years) i was on a variable discounted rate for the 2 years, but now it is up for renewal have been offered 2 new options.

3 Years fixed 4.99% if i take out buildings & contents with them
5.23% if not

2 Years Discounted 4.49%

Which do you think is best to take, or is it better to look around ?

Thanks

dunstonh

What about the third option of not buying a new deal? What terms have they offered if you return to SVR or Tracker (depending on lender)?

Are they also the only two deals they have on offer? short term deals aren't that attractive due to fees.

oranget1

they have offered me 5.69% if i stay on their variable.

There are more deals, but i only want short term one's at the moment

5 year fixed at 5.44%

Burridge60

oranget1 wrote: »

..... but i only want short term one's at the moment

You have a 28 year mortgage but want a short term solution?

What happens when the two year rate runs out in two years time?

oranget1

sorry, i am new to all this, as i was first time buyer, what you think would be the best solution stick on their variable rate for the rest of the mortgage term or keep changing to a better rate ?

thanks

CloudCuckooLand

Take a longish fix, to cut the frequency of product fees, and protect from rate rises a year or two from now.

dunstonh

If things go as expected, the rises in the next year or two are not going to be too bad. Its the rises that come after that which could be nasty. Or of course, they may never come at all depending on the global economy and priorities at the time. So, a two year or three year deal could see you coming out at the worst possible time. Fixed rate deals may not offer the best terms at times but they give you certainty of payment. if you can afford it then you know you are going to be safe even if rates double.

oranget1

I was thinking of going for the 2 year discounted one, and as you say see how things go, and then decide from there

thanks for all your help

much appreciated