which would you go for?

james3333

2 year fixed @ 2.64%
4 years fixed @ 3.44%
opnions on what the interest rate will be in 2 years time?
just cant decide....

amnblog

This is a 'Mystic Meg' question James.

Forget the rates for a second.

Just decide if you want to have stability for 4 years or not.

james3333

amnblog wrote: »

This is a 'Mystic Meg' question James.

Forget the rates for a second.

Just decide if you want to have stability for 4 years or not.

rates have got to start going up soon ( i think) and as soon as they do i wont be offered either of these deals the next time wether in 2 or 4 years...... argh!!!!! ::mad:

amnblog

You may as well ask who is going to win the 2:45 at Sandown.

If you want 4 year stability take that rate.

Peelerfart

If you took the 2 year would you be paying fees again?

james3333

Peelerfart wrote: »

If you took the 2 year would you be paying fees again?

no, no fees with either.......

StuC75

Whats the current LTV % that you have?

Whats the likely LTV left at the end of Year 2 or 4? (KFI's should show this in the payment table)..

Are you likely to make over payments in the meantime?

Would either of those scenarios leave you in a LTV position where you can then source a better mortgage rate for the rest of the time.

Yes rates can only really go up, but when?

But when they do they would likely affect the deals available in either scenario..

E.g. With the 2 year deal - in 2 years, rates / products might be 0.5% higher say, so you get a new deal for a further 4 years...

But in that time rates are still going up - so when the original 4 year one expires rates might be even higher - meaning that products are worse off then what you would have re-fixed onto in the 2 year scenario..

But by having a better LTV in each of these scenarios you might get a better new product..

james3333

StuC75 wrote: »

Whats the current LTV % that you have?

Whats the likely LTV left at the end of Year 2 or 4? (KFI's should show this in the payment table)..

Are you likely to make over payments in the meantime?

Would either of those scenarios leave you in a LTV position where you can then source a better mortgage rate for the rest of the time.

Yes rates can only really go up, but when?

But when they do they would likely affect the deals available in either scenario..

E.g. With the 2 year deal - in 2 years, rates / products might be 0.5% higher say, so you get a new deal for a further 4 years...

But in that time rates are still going up - so when the original 4 year one expires rates might be even higher - meaning that products are worse off then what you would have re-fixed onto in the 2 year scenario..

But by having a better LTV in each of these scenarios you might get a better new product..

i have just had a revaluation done in the HOPE of getting onto a better LTV.....(due to building an extension on the rear)
the valuation is a total JOKE £105,000.....without me building the extension (extra double bedroom, big dining room, toilet and shower) the next door neighbour sold his for more last year! but i cannot contest it!

im 7k off being on the 0-60% LTV

So, by renewal comes after 2 years i recon i will be on the 0-60% bracket, if rates go up so will house prices (hopefully)........

LaFlotte

Is this with Halifax? We were offered the same and after much deliberation took the 2 year deal. We are going to overpay so in two years time will be in the 60% LTV and will hopefully be able to get better deals.

We are hoping that we can come out of this deal in two years and then if rates are increasing sharply we will fix for as long as possible.

We thought coming out of a fixed deal after 4 years might be a worse scenario.

We don't have a crystal ball but thought I would share some of our reasoning. Plus 3.44 isn't that good a rate to be stuck with for four years.

james3333

LaFlotte wrote: »

Is this with Halifax? We were offered the same and after much deliberation took the 2 year deal. We are going to overpay so in two years time will be in the 60% LTV and will hopefully be able to get better deals.

We are hoping that we can come out of this deal in two years and then if rates are increasing sharply we will fix for as long as possible.

We thought coming out of a fixed deal after 4 years might be a worse scenario.

We don't have a crystal ball but thought I would share some of our reasoning. Plus 3.44 isn't that good a rate to be stuck with for four years.

hi thanks for your info. im going to do the same, go with 2 year fixed, yes its with halifax also.

dimbo61

no, no fees with either.......

But in two years time you may well have to pay fees to a different lender.
Take into account ALL the costs to move lenders
Exit fee, legals and survey, searches, new mortgage fee, chaps etc
Do you really want to change mortgage 12 times in 25 years? if you remortgage every 2 years.