Initial Interest / Mortgage Rates

Quinny31

Due to remortgage again next month. No substantial difference in price from each lender etc. Have the option of 2 Years fixed at 1.29% initial interest or 3/5 Years fixed at 1.56% sticking with my current mortgage provider. I know it’s only ever based on predictions, would it be safer/better to opt for 2 years and re asses or to take the longer term?

Thanks 

getmore4less

How much are you borrowing and what are you paying?

You can run the numbers

Quinny31

getmore4less said:

How much are you borrowing and what are you paying?

You can run the numbers

£135k, 60% LTV, 23yr remaining 
£575 payments for 2 years
£590 patents for 3 or 5 years 

getmore4less

Are those the no fee rates, at £135k the fee ones may be better, if fee they look high for 60% lTV.

the payments look more like 22y8m

over 5years if rates don't move 
use ERC to fiddle the fees at start

Mortgage	£135,000
payment	£590	ERC/FEE
rate	1.29%	-£999
new rate	1.56%	£999
Time	Years	months
Left on current	2	0
New fix term	5	0
amount left after(months)		24
Start	rate	End
£135,000	1.29%	£124,190
£135,000	1.56%	£124,902
amount left after(months)		60
£135,000	1.29%	£107,443
£135,000	1.56%	£109,152
Switch when ERC £0
Break even rate needed no fee and fee)		36
£124,190	1.768%	£109,152
£125,189	1.477%	£109,152

taking the 2y give a bit of safety margin on rates going up.
(if there is another fee say £999 then it does not work better with te 5y) 

for you to decide if it is enough