Length of fixed/discounted rates?

ben2444

With the current interest rates quite low, is it worth going for a longer fixed/discounted rate mortgage? I have seen some for 4.99% or even lower, that last for 5 or even 10 years.

Is this a good idea? Or is it still better to get a short term rate and switch when it ends?

Also fixed or discount? From Martins guide, it recommends I go for discount, as I can afford to take the risk, I am not close to the edge.

However It would be nice to know exactly what I'm paying without worrying whether its going to change each month? Any opinions?

michaels

This weeks economists sees inflation rising around the world which means higher long and short interest rates - a 10 yr fix below 5% could turn out to be the deal of the decade - then again we might join the euro and switch to European style low rates - then again in this scenario your downside (loss if locked in to 5% and rates fall to say 3.5%) is limited to 1.%% wheras your upside could be 10+% (not long ago after an oil price surge interest rates went way over 10%)