Unsure on remortgage

theguvnor

Hi,

My 2yr fix comes to an end in March and i'm looking at the offers I have had. Really unsure which to go for.

I doubt we will move within the next 5 years.

Fix period Rate Payment Fees
2 1.79% £580 £999
2 1.99% £595 £-
3 2.19% £609 £-
5 2.19% £609 £999
5 2.39% £624 £-
7 2.99% £669 £-

Would love some advice on which is the best option. The calculators i've used online are not that great. I know it would not be worth it to do the 2 yr fix with a fee.

Balance when fix expires in March will be around £145k House is worth around £230k

Thanks

kingstreet

theguvnor wrote: »

I know it would not be worth it to do the 2 yr fix with a fee

Unless you know the balance at the end of the fix, you can't know for definite if that is the case.

spadoosh

theguvnor wrote: »

Hi,

My 2yr fix comes to an end in March and i'm looking at the offers I have had. Really unsure which to go for.

I doubt we will move within the next 5 years.

Fix period Rate Payment Fees
2 1.79% £580 £999 Cost per year = £7459.5
2 1.99% £595 £- Cost per year =
£7140
3 2.19% £609 £- Cost per year = £7308
5 2.19% £609 £999 cost per year = £7507.80
5 2.39% £624 £- cost per year = 7488
7 2.99% £669 £- cost per year = 8028

Would love some advice on which is the best option. The calculators i've used online are not that great. I know it would not be worth it to do the 2 yr fix with a fee.

Balance when fix expires in March will be around £145k House is worth around £230k

Thanks

So on that basis youre looking at 2 year no fee option, the 3 year option or the 5 year no fee option at 2.39%

Those arent directly comparable due to the likelihood of a rate rise. As such you should take in to account the perceived risk of such. You can try playing through different scenarios as to when it will be better/worse for you to go on the longer fixes. I personally think rates arent going to get cheaper so went with a longer fix, whether or not it pays off will depend if and how much rates rise. If they dont ive spent an extra few hundred quid over 5 years.

theguvnor

kingstreet wrote: »

Unless you know the balance at the end of the fix, you can't know for definite if that is the case.

Just checked the 2yr with no fee has a lower balance at the end of the fix

I like your username. I live on a King street!

kingstreet

So did I.

In Middlewich, so I used that name for my old business, King Street Mortgages.

Then I got a 'cease and desist' letter from a City of London law firm which represented a business which also used the name King Street.

As I'd already moved to Vine Close by then...

theguvnor

I'm married it down to the 2yr fix no fee and the 5 year fix no fee.