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Which Fixed Rate?
logib
Posts: 19 Forumite
Hi all, after some advice......
Our 5 Year 4.89% expires in 3 Months then defaults to 4% Variable;
We are being offered 2 Fixed Rates with our current provider......
4.19% 2 Years;
5.29% 5 Years;
Basically there is an approx £160/month between the 2 rates; my fear with the 2 Year rate is finishing April 2013 when rates will be high? I know a crystal ball would be of advantage, but any thoughts/ideas would be much appreciated? Thanks.
Our 5 Year 4.89% expires in 3 Months then defaults to 4% Variable;
We are being offered 2 Fixed Rates with our current provider......
4.19% 2 Years;
5.29% 5 Years;
Basically there is an approx £160/month between the 2 rates; my fear with the 2 Year rate is finishing April 2013 when rates will be high? I know a crystal ball would be of advantage, but any thoughts/ideas would be much appreciated? Thanks.
0
Comments
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without your ltv this thread is pointless0
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79% LTV - the 2 rates are 80%0
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5 year fix. Can you make overpayments on this?
More info is needed too - what is the LTV, can you overpay etc?Feb 2012 - onwards MF achieved
September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
April 2018 down to 28.00 months vs 30.04 months at normal payment.
Predicted mortgage clearing 03/2047 - now looking at 02/2045
Aims: 1) To pay off mortgage within 20 years - 20370 -
We know nothing about you ! income, loan outstanding, other debts, kids,OH? savings, job and job security.
If you spoke to a " whole of market mortgage adviser" and went through all the options with you0 -
It does depend on all the factors asked above aswell as your attitude to risk.
However one thing we have considered is that if we take a 2yr fixed at the end of the period we will then be under the 75% LTV rather than at 80% LTV so could potentially obtain a better deal on the remortgage.
Onces rates start to go back up the lenders margins will eventually have to come back down. Historically when rates were at the 5% mark you could still get a 5yr fix at 5.5%
You are best speaking to an advisor though to see what they recommend - at the end of the day youdon't have to go along with it but it will give you a better idea of the pros and cons of each based on your individual circumstances
Also - see a whole of market broker rather than just considering what products your current lender will offer you.0
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