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In current climate, would you opt into a 2 yr fix or 5 yr fix
FIRSTTIMER
Posts: 637 Forumite
2.44% 2 year fix with FD
or
3.19% 5 year fix with FD
no fees on either
Mortgage is 150k, value is 170k
or
3.19% 5 year fix with FD
no fees on either
Mortgage is 150k, value is 170k
0
Comments
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Personal choice really. How important to you is knowing what your monthly outgoing will be. Interest rate policy could change at time. The potential for even lower rates is extremely low.0
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to be honest I am thinking take 2 year fix and try and drop to 85% ltv in two years time and then review then rather than have a 5 year fix now0
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Thrugelmir wrote: »Personal choice really. How important to you is knowing what your monthly outgoing will be. Interest rate policy could change at time. The potential for even lower rates is extremely low.
Interest rate dropped just after getting new fixed rate
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We've literally just gone for a 2 year rate. Hoping for an 85% Ltv at the end.0
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I'm going to take 2 year fix as well and then probably stick it on to 5/10 year. Mainly helps us keep repayments down for initial year so we can spend more on the home.0
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yeh agreed - i am deciding on doing the same
2 year fee free fix with fd seems to be the best on the market at the min then drop to maybe a 5 year fix on 85ltv0 -
AnotherJoe wrote: »
Is that a broader trend or simply a lender looking to attract new business with a tranche of funds still available?0 -
Thrugelmir wrote: »Is that a broader trend or simply a lender looking to attract new business with a tranche of funds still available?
Not sure which lender that is but for example from this Monday gone Halifax reduced FTB HTB rate on 2year to 1.39 from 1.59. I assume other products went down too.0 -
You have 10% equity and £150,000 is a big mortgage so why not consider the 5 year fix and overpay like mad.
You could have 75% LTV in five years and the best deals in the market0 -
Thrugelmir wrote: »Is that a broader trend or simply a lender looking to attract new business with a tranche of funds still available?
No idea, but if its the latter, no reason why that wont apply in 2 years time also
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