Long-term fixed vs short-term fixed

missis_amber

My house is currently worth £140,000, outstanding mortgage is £84,000 - so LTV is 60%.


Am currently on a 3.15% mortgage with Natwest that is due to end soon and then revert to their SVR, which I think is currently 4%.


I have recently switched my current account to First Direct. They have a 10 year fixed mortgage at 2.89% with £950 booking fee. I am really tempted by it because it means that I don't have to think about remortgaging every few years.


There is no way that I would be able to pay the mortgage early so unlikely to have to pay the ERC - unless something drastic happens like I die I do however want to move house in the next two years to be closer to good secondary schools. You can port this mortgage to a new property.


I feel a bit overwhelmed and can't really understand whether remortgaging every few years is better or go with a longer-term mortgage? I know there are deals under 2.89% for 2 or 5 years but once you factor in the cost of booking fees every 2 or 5 years does it counteract that?


Any help or advice will be really, really appreciated!

enjoyyourshoes

Just checked similar today


1.18 % for 2 year fixed


High'ish cost £1369 + £130


Allows 10% overpayment too


Put it into a spreadsheet and decide if it works out cheaper over the 2 years even with high set up?

enjoyyourshoes

Sorry forgot to tell you that it was with Yorkshire Building Society

missis_amber

wow thanks for that! The First Direct mortgage works out £18524 more over the two years - really didn't expect that.

missis_amber

Oh ignore that my computer is playing up!!