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  • FIRST POST
    • d0nmac
    • By d0nmac 4th Jan 18, 9:00 PM
    • 1Posts
    • 0Thanks
    d0nmac
    5 year or 10 year fix
    • #1
    • 4th Jan 18, 9:00 PM
    5 year or 10 year fix 4th Jan 18 at 9:00 PM
    Hi,

    Its remortgage time for us and we are unsure what to do in regards of what mortgage we are going for, We want to stay with our current provider(Coventry) as we are accidental landlords with my first flat which has permission to let from nationwide and until recently we had a tenant in it, The Coventry were the only provider who would give us a mortgage without a tenant when we mortgaged when we purchased the house.

    We have no other debt apart from this house and 50k outstanding on my flat which is still in negative equity. We currently pay for the house 533 and 256 on the flat which is covered when we have a tenant in it.

    we have a LTV of 82% with a mortgage of 110,000 and a house value of 135,000. The deals we are considering are:

    5 year @ 2.29 no fee for 531
    10 year @ 2.95 1000 fee 550



    My quandary is that I'm drawn to the stability of the 10 year product although I will pay more but if brexit is terrible and intrest rates rise I should hopefully be protected until things settle down again but by going on the 5 year deal we will drop a year over the full term of the mortgage and at the end of the 5 year period we would have a saving of 2,000 compared to the 10 year.

    I'm getting a mixed response from my friends with a 50/50 spilt down the 2 deals so I thought I'd ask you guys to see your opinions.

    Thanks in advance David
Page 1
    • dimbo61
    • By dimbo61 4th Jan 18, 10:56 PM
    • 9,911 Posts
    • 5,334 Thanks
    dimbo61
    • #2
    • 4th Jan 18, 10:56 PM
    • #2
    • 4th Jan 18, 10:56 PM
    Well 5 years is a long time and 10 years is a whole lot longer.
    Will you really want to stay in your current home for another 10 years.
    Kids, job, location, pension and retirement !
    So much to consider
    • getmore4less
    • By getmore4less 5th Jan 18, 9:04 AM
    • 32,192 Posts
    • 19,346 Thanks
    getmore4less
    • #3
    • 5th Jan 18, 9:04 AM
    • #3
    • 5th Jan 18, 9:04 AM
    but by going on the 5 year deal we will drop a year over the full term of the mortgage and at the end of the 5 year period we would have a saving of 2,000 compared to the 10 year.
    in 5 years using 23y full term add fees make the payment the same.

    111,000.00 2.95% 554.40 92,823
    110,000.00 2.29% 554.40 88,123

    4,700 better off after 5 years

    what rate can you get @ 80% LTV that's only 2k to find(although for Coventry they don't look any better than 85%)

    looking at the Coventry web site I see your two but also some others for 5 years
    using the same payment
    85% LTV 5y left with
    2.29% 0 88,123
    2.15% 999 88,501
    2.05% 999 87,973

    if you qualify for the 2.05% rate that's better than the NO fee.

    another potential advantage of going 5 years is your LTV should get under 70% and possibly under 65% which may open up better rates.
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