2 Year Fixed at 4.89% Vs 5 Year Fixed at 5.24%

cwcw

Ok, please vote now. The price difference in the fixed period for the mortgage in question is around £25 a month.

Amitoocautious

But what are the fees? Are they different? And you need to factor in more fees if you go for the 2 year option quicker than you will (obviously) for the five year one

cwcw

Amitoocautious wrote:

But what are the fees? Are they different? And you need to factor in more fees if you go for the 2 year option quicker than you will (obviously) for the five year one

Same fees.

Amitoocautious

Same cost then but you will be paying them again in 2 years on the shorter option and where do you think interest rates will be by then! You need to work out how much a month the fees would work out and see if the 2 year deal is as good as it looks

cwcw

Amitoocautious wrote:

Same cost then but you will be paying them again in 2 years on the shorter option and where do you think interest rates will be by then! You need to work out how much a month the fees would work out and see if the 2 year deal is as good as it looks

Fees: £495 arrangement, £280 valuation.

3% early repayment charge (during fixed period).

£295 redemption fee to close the mortgage.

talksalot81

In the current economic climate I wouldnt hesitate in going for the 5 year deal.

HugoSP

5 year deal.

Then sit back and relax knowing exactly what you'll be paying for the next 5 years!

save-a-lot

Agree here the 5 year deal too in two years time interest rates may have gone up alot.

talksalot81

Interestingly, this poll probably provides an indirect probe of market opinion. One answer suggests confidence, the other suggests concern.

StratApproach

Personally I wouldn't do either - I've just changed to a 5 year discount (fully flexible) with no Early Repayment Charges. The rate is currently 5.29% and only had a £99 product fee.

It enable me to overpay and wait it out to see what happens in the marketplace before fixing again. Even 'if' the rates go up next month, they can come down just as quick over the next few years.

If pushed for an answer - I'd do the shorter term assuming the proudct fee wasn't high.

The real point to fixing a rate is affordability and security of knowing what you are going to be paying each month.

StratApproach

mystic_trev

StratApproach wrote:

Personally I wouldn't do either - I've just changed to a 5 year discount (fully flexible) with no Early Repayment Charges. The rate is currently 5.29% and only had a £99 product fee.

It enable me to overpay and wait it out to see what happens in the marketplace before fixing again. Even 'if' the rates go up next month, they can come down just as quick over the next few years.

If pushed for an answer - I'd do the shorter term assuming the proudct fee wasn't high.

The real point to fixing a rate is affordability and security of knowing what you are going to be paying each month.

StratApproach

Big gamble - looks like IR's will now be going up in Feb and May (Money Market predictions) and if that dosen't have an effect on inflation they will continue to rise into 2008 - with some Economists saying they could go as high as 6.25% i.e. anther 25% increase. Imagine what effect that would have on already stretched borrowers!