5 or 10 year fix?

skintsaver_2

Hi all. We would love a bit of advice please

Our 1.47% rate is due to end in Dec. We currently only pay £282 a month with an additional overpayment of £118 making our monthly payment £400.

We currently owe £54,700 and have 19y 3m left on the term so will owe less in Dec. House was valued at £130,000 in Dec 2023.

I've just been having a nose online just to start preparing myself for the interest rate rise that's coming for us and was wondering should we do a 5 or 10 year fix?

I like the stability of knowing what our monthly payment is and I'd like to keep paying around the £400 mark.

A quick search showed the following 

5 year - 3.39% - £339 a month
10 year - 4.09% - £356 a month 
These figures were done on what we currently owe/term remaining 

Would you go for a 5 or 10 year fix with an overpayment taking it to £400?
Just thinking about interest rates and whether we'll see highs/lows in the coming years

tetrarch

Overpaying your mortgage is a terrible idea mathematically with a 1.47% rate

You're saving an extra £118 at 1.47% when you could earn over 5% in an interest bearing ISA account elsewhere

Regards

Tet

skintsaver_2

I know it sounds silly buy if I put the money in a savings account I'd dip in and out and waste it on rubbish whereas by overpaying I know it's definitely being put to good use.
I wish I had it in me to save properly lol

Altior

You could lock it in a cash bond, still accessible in emergency within an ISA. The ship is almost out of sight now though.

Can you put yourself in a position to be able to settle the mortgage in six years, or at least a big chunk of it? If so you can take the each way bet and make another judgement in December 2030

Gazjag

Where are you getting rates of 3.39% and 4.09 for 5 and 10 year fix?  These look off in comparison from what I can see in the market.

400ixl

Put the overpayment into a regular saver at 7% (e.g. First Direct) which is harder to dip into and then at the end of the year pay the lump sum (with interest off the mortgage)

RelievedSheff

At those rates I would be taking the 5 year fix.

Hoenir

skintsaver_2 said:

A quick search showed the following 

5 year - 3.39% - £339 a month
10 year - 4.09% - £356 a month 
These figures were done on what we currently owe/term remaining 

What are the product fees ? 

What's your remaining mortgage term? 

How much do you owe? 

Newbie_John

Yeah, I think these rates don't exist..

Nailer99

As others have said, those rates don’t exist. 

Use the MSE best buy mortgage checker. I’ve even put your numbers in for you:

https://www.moneysavingexpert.com/mortgages/best-buys/?journeyType=remortgage&propertyValue=130000&mortgageAmount=54700&depositAmount=75300&term=19&repaymentMethod=Repayment&sortBy=MonthlyRepaymentAmount&pageNumber=1&addFeeToBalance=false&productNoFee=false&noEarlyRepaymentCharge=false