5yr or 3 yr fixed ?

paulb369uk

Hi guys well it's crunch time for me I have to decide on an offer before Friday so here is my situation:-

Broke up with the other half and have offered to pay her off and keep the house myself I have had an offer from Abbey for a 3yr fixed at 5.7% and an offer from FD at 5.29% for 5yrs. I am seriously thinking the 5yr one as I will now be paying the mortgage myself so am edging on the security side of things (I know what I am paying for 5yrs).

My mortgage will be for £125k
LTV around 75%

Any suggestions appreciated

Thanks in advance

gil13

Given the rate and the flexibility the FD offering gives you I would go for the 5 yr, I assume you already have the offer booked with FD as they are not taking on new applications. AFAIK, all those who have had correspondence with them recently they are honouring, but you will have to pay the FD booking fee to ensure you get the rate.

paulb369uk

gil13 wrote: »

Given the rate and the flexibility the FD offering gives you I would go for the 5 yr, I assume you already have the offer booked with FD as they are not taking on new applications. AFAIK, all those who have had correspondence with them recently they are honouring, but you will have to pay the FD booking fee to ensure you get the rate.

Thanks, yes got the FD offer just waiting for the paperwork to come through, funds provisionally reserved till next Tuesday then they want paying £299 to reserve the funds for upto 6 Months. The mortgage is not straight forward due to ToE so the overall cost for the fees will be around £1200, the Abbey fees are about the same.

I think the 5yrs will give more stability and I can make overpayments as well should I ever be flush !!!

Thanks