5yr vs 10yr fixed

mcowan77

Hi

Current 2year tracker with NW coming to an end 1.59%,

I'm considering a 5 or 10 yr fix. stable job and no plans to move ...

can get 5yr fix with NW @2.04%...
best buy for 10yr fix is 2.69 with first direct....

House value – 225000
Mortgage remaining - 155000

Thoughts?

thanks

49IM

Put it all in excel and compare the options. Model it to compare a 10yr fix vs. five lots of 2yrs each with/without a fee each time? And, also, a 10yr fix vs. five lots of 2yrs when the interest rates have risen by x, y or z % each time you come to renew.

You have to run the numbers.

mcowan77

Where can I find one of these spreadsheets?

Cheers

sevenhills

mcowan77 wrote: »

Current 2year tracker with NW coming to an end 1.59%,

I'm considering a 5 or 10 yr fix. stable job and no plans to move ...
can get 5yr fix with NW @2.04%...
best buy for 10yr fix is 2.69 with first direct....

House value – 225000
Mortgage remaining - 155000

Thoughts?

I am hoping for a 2.49% with the Coventry, £1009 in fees, but £500 cash back.
I was hoping for a 2.69% with £8 fees, but that appears to have been withdrawn.

tacpot12

Faced with a similar choice I took the expensive option of a 10 years fix confident in the knowledge that my mortgage could never increase to a level I couldn't afford. I was able to overpay to some degree and saved more than the five year rate would have saved me.

Thrugelmir

A 10 year fix is about as good as it gets at the current time. If it fits your personal circumstances. Think of it as insurance against the future.