interest rates

beds7

Hi all,

we have been approved for a mortgage and everything is going through smoothly but i have to decide on what fixed rate I would like.

If i want 5 years i'm looking in the 4.74% range meaning payments will be around the £820 a month

If i go for 2 years i'd only be on 4.04% and payments would be around the £740 a month which i would rather

The advisor thinks the 5 year is the way to go but is there anything in the economy that would make the 2 year a bad option, surely they won't rise that much will they?

tia

mumf

They won't rise that much will they?

When we bought this house in 1989 the interest rate was 15.25%.We considered through the years an 8% rate to be reasonable.The last 10 years at #### all percent are unprecedented, and have lulled folks into a false sense of security. I would listen to the advisor.

Thrugelmir

Will you be paying product fees for either of these 2 options?

beds7

Thrugelmir wrote: »

Will you be paying product fees for either of these 2 options?

no fee's on either

sevenhills

mumf wrote: »

When we bought this house in 1989 the interest rate was 15.25%.We considered through the years an 8% rate to be reasonable.The last 10 years at #### all percent are unprecedented, and have lulled folks into a false sense of security. I would listen to the advisor.

That is my thinking too, I got a 10 year fixed.