2yr, 3yr or 5yr
Comments
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Just leave the term and overpay when you want.0
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On £50k over 16 years paying £307pm
if rates stayed the same over the 5 years you are left with.
1.83% £35,514
1.99% £35,876
2.13% £36,195
if you took the 1.83% rate for 2 years then to get to owing the same at 5y as the 5 year fix you need a rate of 2.38% or better for the next 3.
You have 2 0.25% rises in hand on another 2y fix.
if you increase the payment it will improve any follow on situation a tiny bit maybe 0.1%
if there
worst case it costs <£700 over 5 years
1 rise the saving goes down to around £320
2 rise saving is gone
3 rise worse off.0 -
getmore4less wrote: »On £50k over 16 years paying £307pm
if rates stayed the same over the 5 years you are left with.
1.83% £35,514
1.99% £35,876
2.13% £36,195
if you took the 1.83% rate for 2 years then to get to owing the same at 5y as the 5 year fix you need a rate of 2.38% or better for the next 3.
You have 2 0.25% rises in hand on another 2y fix.
if you increase the payment it will improve any follow on situation a tiny bit maybe 0.1%
if there
worst case it costs <£700 over 5 years
1 rise the saving goes down to around £320
2 rise saving is gone
3 rise worse off.
Sorry for the slow reply to this. You certainly make some really good points and I am reconsidering the 5yr fix to maybe a 2yr one. It will all depend on the interest rates and how its going to be over the next two years.
Also the length isn't too much of an issue as long as I can afford it and I can pay extra as an when to get the debt down so my next remortgage would be better.
On a different note I'm quite disappointed with L&C. They arranged an appointment to speak to me and didn't bother calling. They called the day after in hours when I was in work which they were aware of and didn't bother leaving a message. I think they may have well lost a customer0 -
Interesting that my lowest 2yr mortgage has now gone down to 1.74% and lowest 5yr mortgage has gone down to 2.09%0
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So the spread has increased very slightly in favour of the shorter fix... but with uncertainty ahead (and lacking a crystal ball) I’d always take the the 5yr deal... to protect myself against what might happen in years 3-5. You’ll sleep easier!0
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On-the-coast wrote: »So the spread has increased very slightly in favour of the shorter fix
Probably reflects the short term cash that's sloshing around under the BOE's funding for lending scheme. In due course this money will have to be repaid and refinanced from alternative sources.0 -
I'm back to swaying towards 5yr deal.
I do have one question though. It seems my best 5 yr deal is actually with my current lender. Is this a benefit staying with the current lender as surely the process would be quicker and easier moving my mortgage? Just wondered really0 -
Found this thread as I'm currently facing exactly the same dilemma - my fixed rate ends in December and my lender has just written to me inviting me to choose a new product, which I can switch to immediately. Stuck choosing between 2-yr 1.84%, 3-yr 1.89% and 5-yr 1.94% (with £999 fee, or 2.13% without fee but works out slightly more for fixed duration). Torn between the 3 and 5.The_Bloodster wrote: »It seems my best 5 yr deal is actually with my current lender. Is this a benefit staying with the current lender as surely the process would be quicker and easier moving my mortgage? Just wondered really
Anyway, they've stated a benefit of staying with them is "there are no affordability or income checks, no legal or valuation fees to pay and no new Direct Debits to set up". So suspect it might be a similar story for you."I am not Geoff Vadar, I'm Darth Vadar"0 -
The_Bloodster wrote: »I'm back to swaying towards 5yr deal.
I do have one question though. It seems my best 5 yr deal is actually with my current lender. Is this a benefit staying with the current lender as surely the process would be quicker and easier moving my mortgage? Just wondered really
Is it offered as a retention product or is it for new customers. If it is recention product then many providers allow you to switch online with minimum further checks. Not sure what your question really is. Normally people ask another provider is offering x% better rate is it worth going to hassle of paperwork etc. In your case cheapest rate is with your current lender so best of both worlds really...0 -
It is for a remortgage as my current promotional rate ends at the end of Oct with HSBC.
Using the comparsion through this site I find that my cheapest 5yr deal is through HSBC although for a very slight increase (£1 per month) I can go through Danske and get £250 cashback but I would have to go through a broker for this. Unfortunately L&G have put me off going through a broker as they arranged an appointment to call me and go through it all and even sent a confirmation email but didn't bother calling me back and have never got in touch since. Obviously the commission wasn't enough for them to bother with as the mortgage is only for £50k
My next one with cashback is Cheshire Building Society but the rate comes up as 2.21% on their site when it comes up as 2.11% on this site.
So I was wondering whether it is just better to go through HSBC who my current deal is with as I probably wouldn't need a credit check etc whereas with Danske I would0
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