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FTB - how long to fix?
btttt
Posts: 4 Newbie
I'm a FTB, with a good loan to value ratio, and currently debating which mortgage fix to go for - 3 yrs or 5 yrs.
Realistically, it's likely that I may want to move property in the next 4 - 5 years if my circumstances change - and I'm unsure how easy it is to move a 5 year fixed rate.
Welcome any views anyone may have on the pros and cons of the 5 year fix (which is the one I'm currently weighted towards).
Realistically, it's likely that I may want to move property in the next 4 - 5 years if my circumstances change - and I'm unsure how easy it is to move a 5 year fixed rate.
Welcome any views anyone may have on the pros and cons of the 5 year fix (which is the one I'm currently weighted towards).
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Comments
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Without any figures to play with virtually impossible for anyone to do the math for your scenario.An opinion is just that..... An opinion0
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Sorry, that would have been helpful!
200,000 mortgage over the standard 25 years. 5 year fixed rate is 2.79% with standard application fees of over a grand. 3 year fixed term is at 2.14 or 2.54% with a discount on application fees for being a FTB. Mortgage repayments work out at around 870 to 950 a month depending on which one i go for.0 -
Take the one with the lower payments and overpay is an option. Means you have the flexibility of lower payments should something arise.0
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As I have said here before, I dont like first time buyers on 5 year fixes.
Circumstances of FTBs can be fluid and the 5 year lock in can be a problem in years 3 or 4.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Yeah don't fix for five years if you think you might want to move in four!0
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There are 'portable' 5 year fixes available which you can take to your next house if required...0
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i've got mine fixed for 3 years and wish i'd gone for 2 years as once its over you can repay whatever you want:T:T :beer: :beer::beer::beer: to the lil one
:beer::beer::beer:0 -
Moving house is expensive
Now if you decide you will stay in your first property for 5 years and can pay down some of the debt with both normal mortgage payments and overpayments you will have a bigger deposit for the next property!!!
Your decision at the end of the day but if you go for the shorter fix overpay the extra you would have paid ( If taking the 5 year deal)0 -
dawyldthing wrote: »i've got mine fixed for 3 years and wish i'd gone for 2 years as once its over you can repay whatever you want
True, but the shorter the fix the more frequently you have to pay up for remortgages too, if you don't want to go onto the SVR (which many people don't).0
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