Mortgage advise fixed rate or variable rates

ric1982

Hi,

I am first time buyer and currently trying see what's the best rate to go for in terms of mortgage.

Both for 2 years

Fixed rate 2.29
Variable rate 1.75

The difference between them in terms of monthly payment is about £40 ish and other expenses (product fees etc) are same.

Looking at various online articles about how the interest rates will behave, I am not sure weather to go for fixed or variable rates. People are saying the interest rates will not go up for another year but looking at the history they have been like this since March 2009 and now inflation is zero which makes me think that it should go sooner then that?

Any inputs is most welcome.

Thanks

tvfreek

What made you go for two years ?

Interest rate are at historically low levels

sofiar

It's not an easy choice as the level of interest cannot be guaranteed, I'm always tempted to go for fixed as I know where I stand, but gambling on variable is also tempting! good luck

ric1982

tvfreek wrote: »

What made you go for two years ?

Interest rate are at historically low levels

The three years one (fixed are for around 3%). and not sure if its best idea to go for longer term.

"Interest rate are at historically low levels", so its likely to go up ... soon?

getmore4less

Lower rate and overpay.

Smaller debt protects against rises.

Why 2 years whats the reasoning for that?

getmore4less

the rates are going up mob have been wrong for 7 years

tvfreek

Who knows what will happen to rates - in truth the usual economic indicators which we use have all gone out the window and have been proved worthless.

The issue is the continual money printing causing asset prices to rise beyond anyone's earning capability.

Ultimately this will come crashing down like never before but until then it's business as usual.

mrginge

Interest rates are going nowhere for 12 months and will only be marginally higher within 24.