Narrowed it down to two... What would you do?

GreatheadShield

With the help of a broker we've narrowed our remortgage down to two options.
2 yr fix, Halifax, 2.19% onto 3.99% SVR (deal is 60% LTV)
3 yr fix, Leeds, 2.49 onto 5.69% SVR (deal is 65% LTV)

No fees on either. 3 yr is only £30 per month more expensive than the 2 yr.
re: the LTV. Current lenders computers 'value' house at £325k, Zoopla says £336k. Two identical houses on the street sold last summer for £350k, and next door neighbours in identical house sold at the end of Oct at £390k (not showing on land registry yet). Broker has plugged figures in assuming our house is worth £370k, I'm nervous that the valuer will disagree and we won't achieve the 60% LTV required for the 2 yr deal anyway.

We're going round and round in circles, I'm leaning towards the 3 yr but just not sure. Does anybody have any opinions?

M0ney

I'd choose the 2 year deal.

md87

If you insist on those 2, as opposed to say a 5yr fix, I would also choose the 2yr with Halifax. I saw the Leeds Building Society when I was searching myself, but their SVR is much higher for some reason. I know you can change once the fix is over, but still I know nothing about the company. And with something like a mortgage I would sooner keep to a more well known brand/company (but that's just my opinion). I ended up with Tesco Bank who also dish out clubcard points (which does not amount to much but still it was around 2.89% for 5yr fix).

Thrugelmir

A follow on SVR of 5.69% suggests that you may incur costs of remortgaging again. So personally I would choose the 2 year option and overpay. At least then you'll have repaid an additional £720 of your mortgage without a thought.

pjread

I'm going to assume ;
* Current lenders computers 'value' house at £325k
* Broker has plugged figures in assuming our house is worth £370k
* I'm nervous that the valuer will disagree and we won't achieve the 60% LTV

boil down to - "I need a 210k or so mortgage on a £325k house", just the right side of 65 LTV ?

As that level (not far off what I'm looking at) I'd say - Nationwide 4 year 2.39% fix is a clearly better deal than your 3 year fix (lower rate for longer, lower reversion rate, available up to 70LTV). they might have slightly better at 65, worth a look..

GreatheadShield

Thank you all! I'm leaning towards the two year now too.

I did read about that Nationwide four year deal actually, I think it had a high fee but I shall check it out.

pjread

Yeah £999 fee, but it beats that 3 year and £999's not too bad on 200k+.

You can beat it over 2 years, depends on your attitude to risk I suppose as none of us know what rates will look like when you next come to remortgage. If you want a short deal, I'd pay £999 and get 1.59% from Britannia/coop, if you can hit 60LTV...

The savings would outweigh the fee (say 0.6% cheaper on 200k = £1200 a year saved, give or take. I'd buy £1200 per year for 2 years for £999 any day of the week )