Fixed rate or variable?

jacobswell

I've got the option of either a 2.59% fixed rate for 3 years, or a 1.74% discount rate for 2 years. Just wanted some opinions! Brokers, out of fixed and variable, what are you finding most of your clients are opting for generally?

Thanks very much!

SouthLondonUser

"discount rate" typically means linked to a rate set by the lender; this means the lender can change it whenever it wants, even when the bank of England rate doesn't change, and you have no control over that.
Are there early repayment charges, i.e. can you refinance with another lender if the rate increases too much?


Also, do you mean they'd charge you 1.74%, or that it would be 1.74% below the lender's Standard Variable Rate?