Best Remortgage deal

elsmore1

Hello,

We are looking to remortgage on a help to buy which we had for years, seems its difficult to move and our current provider is Halifax who we pay £672 per month, the new deals are:

2 year fixed 1.54%, no fees, payments approx. £623 per month
5 year fixed 1.99%, no fees, payments approx. £654 per month

This can be done with no fees etc so looks like a better deal than looking elsewhere and with help to buy seems its difficult anyway.

I consider the 5 year to be best as our daughter starts secondary school in Sept and we have no plans to move and also Brexit may have an impact later on.

Anyone have any other considerations?

Thanks

SuboJvR

Tricky.

Only you know what is best for you, other circumstances can change and such.

That said, with a difference of £31/month, I would be attracted by the 5 year fix.

We are only going for a 2 on our first mortgage. I feel this is risky but the difference between 2 and 5 for us is £140 which is more significant. I would like to pay the extra onto the mortgage itself rather than interest.

SuboJvR

I also doubt things will change too dramatically in the 'short' term despite the uncertain times. Well, I hope they won't. That said we do have scope to "trim the fat" so to speak if we need to (bye bye Sky!)

I also sort of think that banks perhaps wouldn't be offering such good five year rates if they really believed things were on the cusp of going haywire - they could make more money, set the interest higher for the five years so as not to lose out.

It's all guesswork though. Do what you feel most comfortable with! :-)

AnotherJoe

If Brexit has any influence it will be to lower rates, not make them increase, but for the additional 3 years and only £30 a month more, which is say one relatively cheap meal out a month , and since you have good reasons for not moving for a while I'd be inclined to go for the 5 year as it removes a point of stress.

getmore4less

important information missing amount and full term

why only no fee deals?

elsmore1

In the end we opted for 5 year fixed 1.99%, no fees, payments approx. £654 per month, with Brexit etc and rates possibly rising.