Please help me choose a fixed rate!

dimbo61

If you are moving in three years then take the 3 year deal !
You have been paying 5.59% for the last 5 years and have managed.
I would consider this very carefully if you plan on moving IE 3 or 5 Years!
I would also ask your lender to keep your payments static and pay the same every month as you have for the last 5 years.
All the overpayments will put you in a stronger position with more equity ( bigger deposit) in 3 years time.
You will also prove to yourself and any lender that you can afford a bigger mortgage ( We have overpaid £XXX every month for the last 3 years!!! What is the problem about affordability?)

Mrs_Rachel_Trelfa

Poppy_Kennedy wrote: »

Thanks all,

Mrs Rachel - we were on part and part last time as the full repayment would have been 1,800 (i work part time as two small children)

Thrugelmir: good point!

i think you have all helped me come to the decision that a 5 year fixed woudl be best as we cannot afford to pay any more than £1,500 unless we extend the 17 year term.

i have worked out in 5 years we will have paid £54,480 off the capital. I just want to check that it is portable as would like to move in 3-5 years

thank you

Not sure what you mean by part and part?

shop-to-drop

Mrs_Rachel_Trelfa wrote: »

Not sure what you mean by part and part?

She previously said the mortgage was part interest only and part capital repayment.

Mrs_Rachel_Trelfa

shop-to-drop wrote: »

She previously said the mortgage was part interest only and part capital repayment.

Think I need new glasses.


OK, what about something slightly different. Surely if say the 5 year fix is £1300 per month, you could put the £200 difference in the savings account? Or are the three options £1500 per month. Then this lump sum goes against the interest only when the fix ends. How is the interest only capital getting repaid?

Thrugelmir

Mrs_Rachel_Trelfa wrote: »

How is the interest only capital getting repaid?

It won't be currently. Though perhaps this a topic for another day.

Mrs_Rachel_Trelfa

Thrugelmir wrote: »

It won't be currently. Though perhaps this a topic for another day.

I know its not now, I meant the plan for it. If the op is able to do something along the lines of what I put above (and wants to and fits their personal circumstances etc) then this would save them money and make them in a better position for when interest rates rise.

getmore4less

What's your follow on rate on the current deal?

That's the benchmark for looking forward.

Poppy_Kennedy

Thanks again all

Mrs Rachel – I see what you are saying but we will be payingaround £1,500 repayment on the 3 year and 5 year deal so nothing to go into asavings but its a good idea.

The Santander SVR is £4.29 currently I think.

I still don’t know 3 or 5!

We would like to move in 3 years but unsure if we can sotherefore the 5 year is better – who knows what position we will be in in 3years

Mrs_Rachel_Trelfa

Ah right, I see. Didn't realize that they were all around £1,500. If the product is portable then I personally would take the 5 year deal and if you move great, if you don't then your fixed on a great deal IMHO