Is this the best fixed rate over 5yrs (LTV 75%)?

lightspeed

Hi

i keep going round in circles regarding fixed rates, trackers and discounted rates....its driving me mad!!!!

3 years ago i made what turned out to be a costly decision by fixing at 5.79% due to the uncertain direction of IR's and a lack of knowledge and understanding. This was done for security but obviously turned out to be the wrong decision.

Here i am again in the same situation...i can get an AIP tomorrow for 4.79% over 5 years (£500 fee) which is quite affordable at present (still planning on saving £400pm). I am in a better financial situation than 3 years ago so have some flexibility.

or

i could track (lifetime) at approx +2.3% (with 1k fees) or +2.80% (no fees) above BOE BR.

Affordability wise, rates of around 6% would start to impact on current lifestyle. I realise that this is a very "personal" decision but would appreciate some thoughts on which way to go?

thanks

Thrugelmir

How much do you owe on your mortgage?

lightspeed

currently owe 124K

House Value 170K

smcqis

get it to 70% ltv and u can get 5year for 4.38% with nationwide

lightspeed

smcqis wrote: »

get it to 70% ltv and u can get 5year for 4.38% with nationwide

Easier said than done unfortunately.

Any thoughts on tracking or fixing?

thanks

Biffins

lightspeed wrote: »

Easier said than done unfortunately.

Any thoughts on tracking or fixing?

thanks

Fixed if you want the certainty of the amount you are paying.

Variable (tracking or discounted) if you want to pay less overall on average but are ok with the low probability downside case where you might end up paying more.

dimbo61

you have had security for the last 3 years and looking at the BOE base rate of 0.5% does not mean that people with a LTV of 85/90% got that rate !!!
A 5 year fix under 5% is a good deal so keep your payment static and overpay every month for the next 5 years and in 5 years you may have a LTV of 60%