2 year, 5 year 05 7 year?!

dcc251

Thought I would throw this one out there...
End of mortgage term looming, I have the following offers on the table, all with no/ very very low fees.

2 years fixed @ 2.99%

5 years fixed @ 3.59%

7 years fixed @ 3.69%

LTV of < 40%

Firstly ~ can you beat that, or have I been a market scouring legend?
Secondly ~ which should I plump for and why?

Any thoughts/ advice are greatly appreciated.

HappyMJ

7 years. They are all good rates. I'd go for the certainty of low payments for as long as possible. Interest rates cannot go any lower. Yes you'll be paying a premium of 0.7% but I'd say that is a fair premium for a good long term fixed rate.

It's a gamble really but lets say you fix at 2.99% for 2 years you will then go onto variable let's assume it's the same then after a year it goes up 1% to 3.99% then another year up to 4.99%. If you are on the 7 year fix you'll be laughing.

Wh05apk

Historically 3.69% is ridiculously low, and probably still lower than most people are paying now.

At 3.69% you have 7 years of security, and can be smug in 5 years time when rates are back to 5/6%!

Peelerfart

Out of interest who are the deals with ?

Thrugelmir

How much do you owe?

dcc251

Thrugelmir wrote: »

How much do you owe?

£117,000

Thank you all for your thoughts... have just been speaking to a friend of mine who has now done me in by suggesting that I should be looking at an offset tracker, particularly as I'm making overpayments each month!

dcc251

Peelerfart wrote: »

Out of interest who are the deals with ?

YBS, NatWest and Chelsea in that order.

garth549

7 years fixed @ 3.69% is a really good deal. I'd say in 3-4 years mortgage rates will almost certainly be higher than this.

LittleMissAspie

What you really need to do is set up a spreadsheet that tracks the mortgage over 7 years, then you can see which one saves you the most money by the end. I'm surprised there isn't a template for doing that on here. I'd make one myself and share it but I only have OpenOffice which people with Excel can't open.

I would have thought a tracker is a really bad idea seeing as rates can only go up.

dimbo61

You need to read the T&C,s re overpayments with the Chealsea 7 year fix !
At 3.69% you may well think thats a great rate in 2/3 years
We know nothing about you ! other than you have a LTV of 40% and £117K outstanding
You overpay your mortgage but I would guess that Chelsea will allow you to op by 10%( check the T&C,s ) and if you can overpay each month you could be mortgage free in 7 years!!!

shop-to-drop

Is there a large arrangement fee on the 7 year fix? Also are you likely to want to move within 7 years? I will look at this myself.