5 year fixed rate???

nicholasgary278

Please help - I am moving home and looking for a new mortgage.
I need to borrow £110k against the value of the new property of £165k
This is a total minefield to my inferior knowledge but I have been given some quotes by a "whole of the market" broker and the following 2 seem the best:-

5 year fixed with Accord (Yorkshire B.S)
3.84% with a £495 fee
Payments of £571 per month

2 year tracker with Santander
2.49 + base rate
No arrangement fee
Free basic valuation
£250 cashback on completion
Payments of £521 per month (at current BOE base rate)

Any advice would be greatly appreciated - sorry its long winded but this is my first ever thread lol

suisidevw

Go with YBS's own 3.69% with £250 cash back and £95 fee.

zengirl

It's a tough call. It depends if you think the BOE interest rates are going to go up, and by how much, in two year's time!

If you think they will be higher, and the current 5 year fixed deals will not be possible then (or willbe much more expensive), then go for the first mortgage you outlined. However, if you think rates are only going to go up slowly, and there will still be some good 5 year fixed deals around in two year's time, then go for the first option!

Having said that, I'm a beginniner at all this so may not be saying the correct facts.

billybluehat_2

My wife and i got a 5 year fixed mortgage. It's great because we know what we need to pay every month. it sux because we fixed it in 2008 at the height of the market. 2 years left then we need to find a new one.

Sleepy_head_2

I've just been recommended exactly the same 2 mortgages, I also looked at the Accord 3yr fix. After lots of consideration I have gone for the 5 year fix as the interest rate doesn't have to move very much for it to be the cheaper option, and the minute it does go up I expect these fixes will no longer be available.

Sleepy head

JonnyTwoToes

Sleepy_head wrote: »

I've just been recommended exactly the same 2 mortgages, I also looked at the Accord 3yr fix. After lots of consideration I have gone for the 5 year fix as the interest rate doesn't have to move very much for it to be the cheaper option, and the minute it does go up I expect these fixes will no longer be available.

Sleepy head

Unless, like me, you think the trackers will get cheaper when interest rates rise.

thor

JonnyTwoToes wrote: »

Unless, like me, you think the trackers will get cheaper when interest rates rise.

Do you think this because of the competition between lenders?

nicholasgary278

thanks very much for your replies guys and gals - here is another option to throw into the melting pot:-

Barclays/Woolwich are doing a Lifetime Tracker
currently 2.47 (including BOE base rate)
£199 arrangement fee
Payments currently £492 per month

How do you think this compares to the others?

Peelerfart

nicholasgary278 wrote: »

thanks very much for your replies guys and gals - here is another option to throw into the melting pot:-

Barclays/Woolwich are doing a Lifetime Tracker
currently 2.47 (including BOE base rate)
£199 arrangement fee
Payments currently £492 per month

How do you think this compares to the others?

If the BofE interest rate hits 8% in three years how much of a problem would that cause you ?

firesidemaid

suisidevw wrote: »

Go with YBS's own 3.69% with £250 cash back and £95 fee.

i too was going to mention this one - i think it's a good deal:)

nicholasgary278

Peelerfart wrote: »

If the BofE interest rate hits 8% in three years how much of a problem would that cause you ?

I think you can get out after 2 years with no fees - not 100% sure though