In current climate, would you opt into a 2 yr fix or 5 yr fix

getmore4less

What the fee rate(and fee) £150k is often in range to make paying the fee better.

getmore4less

Use £6k of the premium bonds to get to 85% now.

getmore4less

http://mortgages.firstdirect.com/mortgage-rates-fees/list-rates

FD fees deal fees £1450 and the 2 year rate would be 1.89% for 90% LTV.

based on 20y full term

cost basis paying the fee
£150,000 2.44% £790.48 interest £7,043 (less the interest from £1450 in the bank)
£150,000 1.89% £751.04 interest £5,444/£6,893.62 with fee)

Add fees payment the same see what's left basis
£150,000 2.44% £791 £138,059 (cost £7,043)
£151,450 1.89% £791 £137,948 (cost £5,481/£6,931)

£111 better off at the end adding the fees
If on a longer term the benefit will be bigger up to £175 interest only

Into striking range of 80% LTV (£136k small amount off overpaying indexing on house price and you are there).

break even mortgage adding the fees is £139,700 over 2 years


if you can squeeze 85% now £144,500 you can get the no fee 1.94% pay the same £791pm and in two years you owe £130,871, 77% LTV so a good chance in 2 years you could be under 75LTV with a house price rise of 2% over 2years