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First Direct 2 or 5 year Mortgage?
skysnapper
Posts: 8 Forumite
Trying to decide between the 2 of the mortgages as i have one their advisors phoning me tonight.
My finances are as follow
£20k in ISAs but would look to moving that in 6%> rate. So im guessing it would be better having it there gainin interest rather than in my Offset account.
£8k which i have in saving pot in my current bank, (Closing account and moving all my payments and a salary to FD)
Mortgage: 63k
FD Mortgages im looking at
2 year fixed rate offset Mortgage
5.79% for 2 years, reverting to our standard variable rate for the remaining term, currently 6.0%.
The overall cost for comparison is 6.1% APR.
(no arrangement fee / fixed offset Mortgage booking fee of £99)
5 year fixed rate offset Mortgage
5.39% for 5 years, reverting to our standard variable rate for the remaining term, currently 6.0%.
The overall cost for comparison is 6.2% APR.
(arrangement fee £399 / fixed offset Mortgage booking fee of £399)
I was originally going to go for the 5 year but the fees hav now gone up to £800 which is a lot of outlay..
So was wondering whether to go to for the 2 year and see what the market is like in 2 years.
I cant decide which would be the better financial option for me as would be safer to outlay the £800 and fix it over the 5 years at the lower interest rates
I did do the ONE account mortgage offset tool - im presuming banking and having an offset with FD would be a similar setup.
It reckoned i could pay off my mortgage in 2years and 8 months! Which sounded far too good to be true!
IS it very reliable based on the numbers you feed or in or do they play it as some marketing ploy and I should ignore the numbers.
See this leads me to believe maybe i would be wasting my money paying for the 5 year one in this case, unless i could carry the mortgage over to a new property IF i was to pay it off in 3 years.
Thanks,
My finances are as follow
£20k in ISAs but would look to moving that in 6%> rate. So im guessing it would be better having it there gainin interest rather than in my Offset account.
£8k which i have in saving pot in my current bank, (Closing account and moving all my payments and a salary to FD)
Mortgage: 63k
FD Mortgages im looking at
2 year fixed rate offset Mortgage
5.79% for 2 years, reverting to our standard variable rate for the remaining term, currently 6.0%.
The overall cost for comparison is 6.1% APR.
(no arrangement fee / fixed offset Mortgage booking fee of £99)
5 year fixed rate offset Mortgage
5.39% for 5 years, reverting to our standard variable rate for the remaining term, currently 6.0%.
The overall cost for comparison is 6.2% APR.
(arrangement fee £399 / fixed offset Mortgage booking fee of £399)
I was originally going to go for the 5 year but the fees hav now gone up to £800 which is a lot of outlay..
So was wondering whether to go to for the 2 year and see what the market is like in 2 years.
I cant decide which would be the better financial option for me as would be safer to outlay the £800 and fix it over the 5 years at the lower interest rates
I did do the ONE account mortgage offset tool - im presuming banking and having an offset with FD would be a similar setup.
It reckoned i could pay off my mortgage in 2years and 8 months! Which sounded far too good to be true!
IS it very reliable based on the numbers you feed or in or do they play it as some marketing ploy and I should ignore the numbers.
See this leads me to believe maybe i would be wasting my money paying for the 5 year one in this case, unless i could carry the mortgage over to a new property IF i was to pay it off in 3 years.
Thanks,
0
Comments
-
First Direct also have a payment tool, just put the figures in and it will give you your monthly payment for a "capaital re-payment style" mortgage.
As for 2 or 5 years, purely subjective to each person and their situation.0
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