Fixing Mortgage - Which of these deals?

Thrugelmir

darrenwis wrote: »

We would possibly be looking to move in the next 5years as our house is certainly becoming crowded. But not sure if anything would happen with the next 3 years.

Mortgages can be ported. Don't let a potential move sway your decision. For peace of mind a 5 year fix is the safe option. The risk with shorter term fixes is that interest rates may well have risen by the time a new product is sought. Any benefit now may be wiped out totally in the future.

xyz123

IMHO, if you are planning to move then don't look at 5 year fixed. Mortgage may be portable but it doesnt guarante that it will be transferred. If you.move then new property, loan amount, affordability will still be fully checked and if for some reason they don't want to land on new property you maybe left with early repayment charge. On one side you are saying you can't afford, £995 mortgage fee upfront even if it saves you money on it (by not putting it on loan) so affordability when you move to a bigger (most likely more expensive house may not be a done deal....

getmore4less

Paying fees up front saves money is a myth.(it's a tiny saving)

The cost comparison is done based on if you have the money or not.

darrenwis

Overall, it was showing up as £38 more expensive paying fees upfront.

We've gone for 3 year fix no fee.

Who knows if we've done the right thing.

Thrugelmir

darrenwis wrote: »

We've gone for 3 year fix no fee.

Who knows if we've done the right thing.

If the product meets your current circumstances and gives you peace of mind. Then it's right. Impossible task trying to second guess future events which aren't even yet on the radar.

dimbo61

If you plan on moving to a bigger house in the next 2/3/5 years then overpay what ever you can each month.
Will reduce your debt and increase the equity for the next home which Just might give you a better LTV when you do move