2yr, 3yr or 5yr

The_Bloodster

PhiL_P wrote: »

Found this thread as I'm currently facing exactly the same dilemma - my fixed rate ends in December and my lender has just written to me inviting me to choose a new product, which I can switch to immediately. Stuck choosing between 2-yr 1.84%, 3-yr 1.89% and 5-yr 1.94% (with £999 fee, or 2.13% without fee but works out slightly more for fixed duration). Torn between the 3 and 5.

Anyway, they've stated a benefit of staying with them is "there are no affordability or income checks, no legal or valuation fees to pay and no new Direct Debits to set up". So suspect it might be a similar story for you.

In my case when I first got the mortgage I got it without any fees as it was cheaper to do this even though my rate was higher. I think over the 2yr initial rate term I paid an extra £250 ish but paid no fees which would have been around the £1000 mark


It will depend on how much you are borrowing whether you save by paying a higher rate to avoid fees.


I'm borrowing £50k and I can get a 5yr deal at 2.09% paying £306 a month. My cheapest with fees is 1.84% paying £301 a month but fees of £1529 (meaning I'd save £300 on the monthly payments but pay a lot of fees)