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Fix for two or three years... or even longer?
Mandog
Posts: 88 Forumite
Other threads on the board are suggesting taking longer-term fixed rates. However my own situation is a less straightforward.
I'm stuck with my existing lender Abbey for this remortgage (because I'm newly self-employed). The rates Abbey is offering aren't brilliant but the effect is an increase of around £70 a month on my current payments, which I can manage. The mortgage is on 50% of a shared ownership property.
In my optimistic moments I think: Go for a two-year fix. In 2010 I'll be either established as self-employed or back in salaried employment, and able to shop around. I may even be able to afford to buy a further 25% of my property.
In my pessimistic moments I think: Take a longer-term fix. Interest rates may be higher in 2010 or the current crisis could have completely changed the mortgage market. Or I may have been hit by the downturn and taken a drop in income and not be a good prospect.
No-one can see the housing future but I'd be grateful for opinions or advice.
Thank you!
I'm stuck with my existing lender Abbey for this remortgage (because I'm newly self-employed). The rates Abbey is offering aren't brilliant but the effect is an increase of around £70 a month on my current payments, which I can manage. The mortgage is on 50% of a shared ownership property.
In my optimistic moments I think: Go for a two-year fix. In 2010 I'll be either established as self-employed or back in salaried employment, and able to shop around. I may even be able to afford to buy a further 25% of my property.
In my pessimistic moments I think: Take a longer-term fix. Interest rates may be higher in 2010 or the current crisis could have completely changed the mortgage market. Or I may have been hit by the downturn and taken a drop in income and not be a good prospect.
No-one can see the housing future but I'd be grateful for opinions or advice.
Thank you!
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