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How long to fix?
NH2004
Posts: 112 Forumite
I'm currently looking at buying my first property sometime next year. I am a first time buyer with a 40% deposit, so am able to get some fairly good rates.
After a brief discussion with an IFA, he mentioned 3 deals currently available to me:
A 2yr fix at 1.89%
A 3 year fix at 2.4%
A 5 year fix at 2.95%
The repayments work out about £40 more a month on the 3yr fix, and £70 a month on the 5yr, when compared to what I'd pay on the 2 year.
The fees are £999 for both the 2 yr and 5 year deals and £499 for the 3 year.
Initially I was thinking of going for a 5 year fix for peace of mind, but now I'm not sure if that is the best way forward.
In 2 years we would hope that my wife would have a job, even if only part time, which would help the household income..
Not that any of the payments are unmanageable and the higher 5 yr fix repayments are within my budget.
Whilst I know, that nobody knows what will happen with interest rates, I would welcome opinions on what others would choose in my situation?
After a brief discussion with an IFA, he mentioned 3 deals currently available to me:
A 2yr fix at 1.89%
A 3 year fix at 2.4%
A 5 year fix at 2.95%
The repayments work out about £40 more a month on the 3yr fix, and £70 a month on the 5yr, when compared to what I'd pay on the 2 year.
The fees are £999 for both the 2 yr and 5 year deals and £499 for the 3 year.
Initially I was thinking of going for a 5 year fix for peace of mind, but now I'm not sure if that is the best way forward.
In 2 years we would hope that my wife would have a job, even if only part time, which would help the household income..
Not that any of the payments are unmanageable and the higher 5 yr fix repayments are within my budget.
Whilst I know, that nobody knows what will happen with interest rates, I would welcome opinions on what others would choose in my situation?
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