5yr or 3yr fixed rate??

SuperSaver123

Hi All,

Please can you help me. I need to decide but haven't got much time to consider it carefully due to other commitments at the moment.

I have my mortgage due for renewal:

2yr 3.54%
or
5yr 3.84%

Exit fees for both, but I am not intending to move at the moment. Saying that, if I decide to do so, I can take the mortgage with me.

At the moment my LTV is 68%, according to my calculations the LTV in 2 yrs would go below 60% so

am I right in thinking that 2 yr is better, despite the possibility that interest rate may go up??

Thank you for any comments.

Mrs.Downie

How did you work out your current LTV?

SuperSaver123

I just had a bank valuation and checked my outstanding mortgage balance.

SuperSaver123

Balance on mortgage/Bank Valuation=68%

latecomer

The best rates tend to have pretty high fees so take into account you would need to remortgage at least once more if you take the 2 year fixed to stay on the best rates available over the next 5 years.

Have you checked the follow on rate from your existing lender?

SuperSaver123

Thanks Latecomer.

This is my current lender so no transfer fees involved.

SuperSaver123

after the fixed period switches to 3.99% variable

kingstreet

Those rates aren't great. There are low/no fee remortgage options at better rates than that.

Shop around a bit more before deciding.

SuperSaver123

But if I had to choose 2 or 5 yr at above rates which one would say is better?

I have other commitments at the moment and don't want to leave my mortgage for another month on the old rate so kind of need to make a decision with the current lender. Not the most moneysaving, I know but sometimes we have to choose and not switching and looking at other lenders will lose me less money than neglecting the other stuff I have going on at the moment. This is the least of bads i have to chose from.

latecomer

To be honest if you are that pushed for time I would do nothing and go onto the SVR @3.99 until you get time to look at the options properly.

dimbo61

Saying what is the best deal for you would need a full fact finding interview!
Income, age, job, plans, savings, kids!!
Most mortgages are still for 25 years and do you want to remortgage every 2 years?
Rates have never been this low and the long term fix gives you security