Remortgage Advice

daivid

My re-mortgage has just completed, 5year fix at 1.51%. I had similar offers for 2year fix to you but my 10 year offers were a bit worse (2.64% IIRC). You say you don't intend to move, and expect your job to stay the same so the fixes offer stability and look very competitive. Are you having to pay any fees for those offers? If you're certain to stay put, potentially paying fees more times could well wipe out any benefit of the 2yr over the 5yr, similarly paying once not twice would soften the increase in rate from 5yr to 10yr.

Whatever you chose is a gamble so you need to pick the one you think is best (and be least disappointed with if not). I chose a 5yr because I think 'the dust will have settled' by the point I need to change deals and I expect rates to be low still. Basically I am gambling on getting another good rate in 5years after enjoying this one. I will be (have already) making over payments/ putting money away at a higher rate so at the end of this deal I can either reduce the term or the payments if needed. In your shoes I think I would go for the 5yr fix and overpay regularly (even if only by £43 pm (467-424)). I have no expert knowledge or crystal ball, to me your best options are the 5 and 10, out of those the one you are least likely to be disappointed with might be your best option.

UniqeNewYork

Thanks for all the advice. I really appreciate it. It's a 5 bed with a 1 bed Granny Annexe and large garden so I'm fairly confident it won't decrease in value and will likely increase but I guess you never know. I need to sit down and work a few things out as 2 year and overpay or fix 10 year have temptations for different reasons. Paying a min £1k arrangement fee every remortgage is an annoyance and also a factor I need to consider. Such a difficult choice as interest rate prediction is like pi$$ing in the wind at the moment.

blue_max_3

UniqeNewYork said:

Thanks for all the advice. I really appreciate it. It's a 5 bed with a 1 bed Granny Annexe and large garden so I'm fairly confident it won't decrease in value and will likely increase but I guess you never know. I need to sit down and work a few things out as 2 year and overpay or fix 10 year have temptations for different reasons. Paying a min £1k arrangement fee every remortgage is an annoyance and also a factor I need to consider. Such a difficult choice as interest rate prediction is like pi$$ing in the wind at the moment.

It's always a tricky choice! I remember fixing at 11% as mortgages hadn't been that cheap for a number of years! I lost on that particular one though. 
Another option is to take out a stocks and shares ISA over 10 years, to give you a sum to pay off then. That's if you believe you can earn more than the 2.19%.

dimbo61

You need to take that fee into account.
I always divide the fee by the number of months the deals lasts !
So £1,000 over 2 years is over £40 a month.
However £1,000 over 5 years is £16 a month.
And £1,000 over 10 years is £8 a month.
Lots to think about