Fix for 1 year or 2 years?

Kirsty327

We are currently on our mortgage provider's SVR of 4.99%, I don't think we have a very good LTR, maybe 95% so I don't think we can get a very good deal going anywhere else.

Our current provider has just quoted us the following to fix:

1 year - 4.69% no fee
2 years - 4.99% £799 fee

I'm not sure whether to fix for 1 year or 2 years and would very much appreciate any comments or suggestions of things that I should consider.

Radiantsoul

£800 seems like quite a large fee, but it all depends on how much you are borrowing -on £80k it is lots, on £800k rather less.

originalmiscellany

What are the chances of you getting a decent amount of savings made in the next year? That's the key qn, to help you move away from your current situation (not a good LTV) to a better one when you remortgage in either 1 or 2 years time.

Tabatha_Kitten

Option 1. Stay where you are on the SVR and it is only likely to go one way and thats up.
Option 2. The 1yr fix is less than the SVR and with no fee then you have nothing to loose and probably more to gain than Option 1.
Option 3. Depends on how big your mortgage is as to whether you whoul benefit from paying £800 fee.
The onlyway you can increase the options for the future is by overpaying as much as you can to get the LTV down.