2,3, 5 yr fixed...tracker

lydriver

wondering what peoples thought/opinions are on these options
what would you go for?


2 year tracker @ 2.19
2 year fixed @ 2.34
3 years fixed @ 2.69
5 years fixed @ 3.04
10 years fixed @ 3.64

these are all zero setup fee

David_White

I'd be wary of getting other peoples opinions on something like this as your circumstances are entirely different to Joe Bloggs on a forum.

Any plans in the next 10 years, kids, new house, change of job etc?

lydriver

yeah I understand that
was just wondering what peoples reasons would be for choosing one over the other

no plans other than to make overpayments, which could mean a change of job, possibly self employed

andrewmp

10 years fixed or 2 tracker depending on your circs.

10 year fix will give you protection against rate rises. 2 your tracker will be the cheapest short term and rates will probably still be low in two years time.

The decision should depend on how well you can handle potential interest rate rises.

David_White

lydriver wrote: »

no plans other than to make overpayments, which could mean a change of job, possibly self employed

If you're potentially changing to being self-employed in the future this could well be a factor in your decision making as it could take a few years to get going and some lenders require 3 years accounts.

lydriver

yes, I'm unsure how it should affect my decision though...

if I took a 2 year fixed and went self employed within the 2 years - when the 2 years are up would the lender likely offer the same range of products on offer just now or could I be stuck on the SVR as I wouldn't have sufficient accounts evidence?

David_White

It'll depend on the lender to be honest, some will allow you to do a product transfer after the deal ends via their website as it's non-advised and won't need income verification but this is not the case for all.

Thrugelmir

If you plan to make serious inroads into the debt with overpayments. Then the 2 year fix.

Logic being that it's the amount you owe rather than the interest rate that's the determining factor.

By way of illustration it's cheaper to borrow and repay £130k at 6% than £150k at 4%.

lydriver

thanks

sorry the last bit has went a bit over my head?

the amount will be reduced (amount available for overpayments) regardless of how long the fixed period is

if making overpayments why is it beneficial to have the 2 year fix (I am obvioulsy missing something here!)

Thrugelmir

lydriver wrote: »

if making overpayments why is it beneficial to have the 2 year fix (I am obvioulsy missing something here!)

Lowest rate of interest on offer. The less you owe the less interest you'll get charged. Debt only has to be repaid once.

There's little to suggest an imminent rise in rates in the short term.

lydriver

still not getting it sorry....

are the figures you quoted mixed up maybe - or has my brain completely given up for the day?