Which deal?

monkeydust_2

Have an two offers which is still valid, I guess it all depends right, initially I was hopping the 'crunch' would pass in the first quarter and banks would start lending to each other at sensible rates, not happening, but I cant see this lasting for more than a few years if base rates do drop by 2% this year.

5.59% 2 YEARS - £1K fees
5.63% 3 YEARS - £700 fees

appreciate comments.

cheers
MD

_Andy_

Hard to say which is 'best' - depends on your personal choice really, i.e. do you want to fix it for 2 years or 3 years?

Gorgeous_George

How much are you borrowing? For how long and when do you want to change again?

LTV is important. Less than 60% and it is likely that you will be better off choosing a long term deal now rather than wait for your LTV to deteriorate.

GG

sarkin

I would look at 5 year fixes rates, as rates are not going to be lower in 2 years time IMHO.

monkeydust_2

hi thanks for responses

so borrowing 220K, value is 280K, so LTV just under 80%, in terms of next changing dont want to lock down for more than 3 years believe bank rates will eventually re-align with base in the next 2 (thats my view)

thinking of the longer term deal now, I need to decide Monday as I believe the abbey rates have jumped up over the last couple of weeks (?)