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Fix for 5 years or over pay?

thenewbee · 2013-12-04 20:58:45

Found a really good mortgage deal from First Direct - their limited edition rates are really low! And they also offer 5 year fixed rate. My question is this - would it be more beneficial to fix at just below 5% for 5 years or get a 2 year fix at s lower rate which would allow us to over pay about 2-300 per month? FTB…

Comments

pjread Posts: 1,106 Forumite

9 December 2013 at 6:42AM

[QUOTE=dimbo61;[URL="tel:64012820"]64012820[/URL]]
So after paying a mortgage for 5 years you would still owe £160K[/QUOTE]

Looks about right, guess that's why the OP wants to overpay ~300/m (or knock another 18k off that figure over 5 years, plus interest savings on top, if you prefer)

Not really sure what the relevance of your comment is to be honest. Not impossible I've missed it of course, but it doesn't look shocking to me?

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