Remortgage - 5 year fixed or life BR+2.04%?

zweety

Hi,

I am currently remortgaging my property and I am hesitating between two products:

The first product is a 5 year fixed rate of 2.95% and a fee of £695 with Accord Mortgage

The second product is a LIFE rate of Base Rate + 2.04 with HSBC

Additional info: It is 60% LTV

I also wonder whether to take it over 15 year of 20 years, but that's a different matter.

Any advice?
Thanks

Let_Us_See

if you require stability of mortgage payment then the fixed rate is the only option. If not, select BT, and keep your fingers crossed.

michaels

Why not the coop 5yr 2.79% deal - your broker probably won't find it as it is direct applications only.

Morgage_Confused

take it over 20years(or longer)
just overpay if you want it finished in 15(or less)

kidmugsy

Isn't the life rate a one-way bet? You can pull out but they can't. So they have to charge to cover that asymmetry. 2.95%: neither can pull out (except with penalty) so the pricing is sharper. Hell, 2.95% is less than the inflation rate over recent years. I call that attractive. 2.79% is even better.

zweety

michaels wrote: »

Why not the coop 5yr 2.79% deal - your broker probably won't find it as it is direct applications only.

Who's the 5year 2.79% with? I didnt't find it. I'll look for it now!

dimbo61

COOP bank and the fee is £1000 but I think you get free legals and basic valuation but check with the COOP first.
The Base rate tracker only needs to go up 1% in the next 2/3 years before the fix is a better deal.
If it was me a would be taking the fix but maybe its my old age !!

zweety

dimbo61 wrote: »

COOP bank and the fee is £1000 but I think you get free legals and basic valuation but check with the COOP first.
The Base rate tracker only needs to go up 1% in the next 2/3 years before the fix is a better deal.
If it was me a would be taking the fix but maybe its my old age !!

Thanks all. Yeah I found it by googling the rate.
It definitely looks like the best option and I think I’ll go for it!