Advice Needed [First time buyer]

SCHAM

getmore4less wrote: »

Ask him to put this opinion in writing with the reasoning and justification on why it is better than other options?

Reasoning on the phone was that he thinks the rates will rise inside 5 years and LTV won't mean much :whistle:

enthusiasticsaver

There is an expectation that rates will rise in the next few years and yours is a large mortgage so a small increase in interest rate will mean a hefty increase in payment. I would fix for around 5 years or even 10 and pay as much as you can afford to get the mortgage down in the early years. If you will be tight on income you can go for the longer period and overpay to give you flexibility should your income drop but that requires discipline.

getmore4less

SCHAM wrote: »

Reasoning on the phone was that he thinks the rates will rise inside 5 years and LTV won't mean much :whistle:

ask the question how much do rates have to rise to make this the better option (and put it in writing)

Also the key period is 2 years not 5 for a comparison against 2y rates.

Thrugelmir

Expectations are that the BOE will raise rates as early as May. Likewise lenders themselves may be forced to edge rates for upwards for commercial/regulatory reasons.

dimbo61

I can understand where the man from the bank is coming from.
You are taking on a very large mortgage ( your first ) and the security of a 5 year fix when rates are slowly starting to rise could mean your at 75 percent LTV in 5 years time.
Lots of things can change in 5 years, Job, kids, income, pension etc