3yr or 5yr fixed rate? what would you go for?

goodmorningsunshine

rainbowcloudy wrote: »

Still cant decide. I would save around £20 a month with the 3 yr at the lower rate. That would be £720 over the 3 years plus balance would be about £450 lower. Although i plan to overpay about £650 month mayb a bit more. Then though after 3 years i would need to either do a rate switch which wouldnt cost me anything or a remortgage which would cost the usual legal/valuation fees unless the lender was offering free fees.
I dont want a tracker rate so not really thinking about that.
I guess it depends what fixed rate i could get after 3 years :-\
Still confused.

So you will be better off by around 1200 pounds (seems such a small amount?) taking the 3 year deal,

then with this knowledge I would go with the 5 year deal - your are only talking 2 months of your planned !!!Overpayments!!!

Alias_Omega

Year ago, we fixed for 5 years at 6.08% before the rates dropped to the floor in 2008. Its not long ended...

For 5 years, we had no worries of what our mortgage payments would be, no issues of any increases and in that period we let the house for 2 years as we had to move away.

So...if you want 5 years of "Worry Free Thoughts" then go for it..

If I could fix for 10-15 years on a new mortgage I would....