Fixed or Variable?

novanic

I need a £124k mortgage over 16 years. I've always gone for fixed rate before now but wonder if I should try a variable?

I'm currently on a rate of 2.99% with First Direct that ends in September and won't be able to get a fixed rate now as good as that. First Direct rate will go to 3.69% after September and HSBC look next favourable for a 2 year fix.

We have a reasonably good income so could manage a certain amount of fluctuation but wouldnt' want our repayments to increase dramatically.

Any advice please?

Thrugelmir

What variable rate are HSBC offering?

opinions4u

Fix low and fix long.

bigadaj

No point going for a short term fix, either go variable or at least a five year fix.

woody2234

A 5 year fix may cost a little more but some say the interest rates will go up in 2015

novanic

Thanks, I see HSBC are now offering a rate of 2.99% fixed for 5 years but the fee is £1499! I guess even with the high arrangement fee it's worthwhile?