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5 year or 10 year fixed
Chiddles
Posts: 48 Forumite
I have a dilemma and I though maybe the brainy bods on here might be able to help...
I have a mortgage of circa £90k and am looking to borrow an additional £70k for an onward purchase. Staying with my current mortgage provider, I was planning on keeping the current amount on its SVR of BBR+1.49%=1.99% and the additional amount on either a 5year fixed rate of 2.88% or a 10 year fixed rate of 3.89% (fees are £500 and £1500 respectively and would be paid up front. Both products revert to BBR+3.39% after the initial period). The term would be 25 years.
I'd be interested in your opinions as to what the best path might be (I appreciate no one has a working crystal ball).
I have a mortgage of circa £90k and am looking to borrow an additional £70k for an onward purchase. Staying with my current mortgage provider, I was planning on keeping the current amount on its SVR of BBR+1.49%=1.99% and the additional amount on either a 5year fixed rate of 2.88% or a 10 year fixed rate of 3.89% (fees are £500 and £1500 respectively and would be paid up front. Both products revert to BBR+3.39% after the initial period). The term would be 25 years.
I'd be interested in your opinions as to what the best path might be (I appreciate no one has a working crystal ball).
Which mortgage product would you take? 7 votes
5 year fixed at 2.88%
42%
3 votes
10 year fixed at 3.89%
57%
4 votes
0
Comments
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not done the numbers but gut is take the 5 and pay at 10 rate. You borrow £1k less to start with an the overpayment will reduce the borrowing further stick the numbers in a calculator and see how much you would owe on each after 5y.0
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getmore4less wrote: »not done the numbers but gut is take the 5 and pay at 10 rate. You borrow £1k less to start with an the overpayment will reduce the borrowing further stick the numbers in a calculator and see how much you would owe on each after 5y.
There is a good calculator here: http://www.creditmarket.co.uk/mortgage-calculator/ for working out how much you will owe after 5 years. Click the amortization schedule tab.0
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