3 year or 5 year fix?

ellives

Hi

Got an offer of 3.59% for 3 years and 4.49% for 5 years on a 20% LTV.

My thoughts have been to go for a 5 year fix but the rate is more attractive for the 3 year fix....I'm confused.

Anyone got any thoughts re: possible perils of a 3 year fix??

Thanks in advance.

Yorkie1

Do they have the same arrangement etc fees?

Do you have any reason to think you might want to move or change mortgage product in the next 3-5 years?

ellives

yes, good questions...

same arrangement fee

and no plans to move house for 20 years and will see fixed period out.

getmore4less

What size mortgage, income , what are the fees, do you need to fix.

ellives

Sorry guys I wasn't clear, the real focus of my question is to do with your views vis-a-vis borrowing over 3 years as opposed to 5.

For example, is three years hence predicted to be a good place to land after a fix or not.....probably a how long is a piece of string style question.....

getmore4less

ellives wrote: »

Sorry guys I wasn't clear, the real focus of my question is to do with your views vis-a-vis borrowing over 3 years as opposed to 5.

For example, is three years hence predicted to be a good place to land after a fix or not.....probably a how long is a piece of string style question.....

depends what you want to do at the end of the fixed period,

so you need to consider the follow on rates, will you have a job/income, what will the new fees on deals be rates loads of things

My view is that neither may be the right choice.

Too any people fix when their best choice would be something else.

mimimt

ellives wrote: »

Hi

Got an offer of 3.59% for 3 years and 4.49% for 5 years on a 20% LTV.

My thoughts have been to go for a 5 year fix but the rate is more attractive for the 3 year fix....I'm confused.

Anyone got any thoughts re: possible perils of a 3 year fix??

Thanks in advance.

Hi, which lender is this? I'm looking for a good 3-year fix and 3.59% seems the best I have come across so far. Thanks