Mortagage deals - coming off fixed after 5 years

Denise_and_Peter

I have now found out what deals halifax can offer us once the fixed rate expires

2 year fixed 4.19% with £999 fee
3 year fixed 4.79% (no fee)

2 year tracker 3.04% with £999 fee
3 year tracker 3.39% (no fee)

Or we can revert to standard variable rate of 3.5%

The fees seem a bit steep for 2 year deals. We can reserve a rate but I have no idea which one but I guess we should reserve something just in case!!

Are these fixed rates reasonable in the current climate? We have been on fixed 5.99% for 5 years.

Not sure what to do!!

kingstreet

What's the mortgage amount?

If it's under £100k, you're better off with the fee-free deals. If it's over £130k, you'd probably be better off paying the fee. Inbetween, you'll have to work it out.

Do you want the certainty of knowing your payments for another couple of years? If so, go for the fix. If you're happy you could live with fluctuating rates, go for the tracker, as you'll save money during the time the rate is cheaper than the fixed alternative.

CloudCuckooLand

No new 5 year deal offered ?

herbiesjp

Have you looked at other lenders/rates?

I know you say you do not think you would get the mortgage elsewhere, but unless you check it out you may not be getting the best deal.

kingstreet

Oops! Just noticed the deals have different terms based on whether or not a fee is paid. My point earlier about not paying fees for smaller mortgages was based on products for the same period.

It seems if you want a two year fix, you have to pay a fee. If you want a three year, you don't. Trackers are the same.

There are five year deals available CCL. 4.94% to 5.29% depending on LTV.

Denise_and_Peter

Thanks for your replies, mortgage is over £130k but we dont have the £999 fee to hand so would have to add to mortgage so that means more interest.

They asked if we wanted the rate for the 5 year but we declined as not sure whether we want to be tied in for that long again. Do you think it is worth finding out?

Perhaps we could go for the 2 year with fee for 4.19% and over pay the difference between that and 5.99%. I am so unsure on tracker, just worried if rates are very high then the tracker will be higher, but to be honest I don't know a lot about trackers, never been on one, so should read up on it.

Denise_and_Peter

LTV is 71%

SAMMYE_2

Denise_and_Peter wrote: »

LTV is 71%

I'm nto an expert but I'm sure you should be able to get and much better rate for LTV at 71%!?

XBell

Hi, I have a similar LTV of 74%, and we're going with Nationwide 4.89% fixed 5 years with £900 fee. I was torn between 2 or 5 year fixed rate because the 2 year deals are much cheaper (in terms of interest rate) but went for a 5 year fixed in the end because I don't want to be looking for another mortgage when 2 years is up and I think interest rates can only go up from now and 2 years seem too short a time for the economy to become better. But that is just how I worked it out.

The mortgage calculator on this site might help you in comparing the two fixed rate deals. You want to think about the equity you can have at the end of each deal too.

dimbo61

Use "whatsthecost" to work out how much you will have paid off over 2/3/5 years!
now are you planning on staying in the property for at least another 2/3/5 years?
You need to look at long term plans ! Kids, job,career, retirement ETC
A 5 year fix at under 5% gives long term security and the chance to clear some of the debts and if you overpay on top !!!!( interest rate now 5.99% new rate under 5%) you can make big inroads into the mortgage

Crashandburn

ING with 4.19% for 3 years and £195 fee would seem to out perform the 2 year deal you're being offered