Remortgaging question

[dan_almond]

All,

Ill keep this one simple. My mortgage is currently up for renewal, and unsure wherther to play it safe and go for a 2 year deal, or take a punt and fix it for 5 years. I should be paying less than what i currently am regardless (2yr at £149 a month less, and 5yr at £88 a month less). Currently earning good money, would like financial security over 5 years, but dont want to pay more than the bloke living next door!

What would you do?

[Sarnie]

dan_almond said:

All,

Ill keep this one simple. My mortgage is currently up for renewal, and unsure wherther to play it safe and go for a 2 year deal, or take a punt and fix it for 5 years. I should be paying less than what i currently am regardless (2yr at £149 a month less, and 5yr at £88 a month less). Currently earning good money, would like financial security over 5 years, but dont want to pay more than the bloke living next door!

What would you do?

- I should be paying less than what I currently am
- 5yr at £88 a month less
- Currently earning good money
- would like financial security over 5 years

Seems like you've answered your own question?

[DarylB90]

I had the same decision to make about 3 months ago.
I went for the 2 year fixed in the end.
Couldn't see the rates rising that much over the next 2 years to warranty paying the extra on 5 years.

[Shaoxter]

Work out the breakeven rate for years 3-5 on the 5 year deal and then look into your crystal ball to see what level mortgage rates will be in 2 years time

[KTF]

What are the fees on each deal as they should be taken into account as well.

[dan_almond]

Sarnie - Your probably right there!

KTF - Fees noted, although i have taken cost of fees and spread out over the year, and so are included within my monthly saving.