5 year vs 10 year fixed rate mortgage?
Discussion
Just looking for a mortgage to buy a house and with the 'uncertainty' of Brexit etc Barclays seem to be offering a favourable 10 year fixed rate.
Just have a feeling that these great 2 year fixed rates won't be around for ever. I've been reading on here too and seen Sarnie's name been mentioned so I'll drop him a pm too.
Below is for 10 years:
Representative example: A mortgage of £300,000 payable over 25 years, initially on a fixed rate for 123 months at 2.69% and then on our tracker rate of 3.49% above the Lenders Bank Base Rate for the remaining 177 months would require 123 monthly payments of £1,374.74 and 177 monthly payments of £1,476.77. The total amount payable would be £431,610.00 made up of the loan amount plus interest (£130,481.00) and arrangement fee (£999). The overall cost for comparison is 3.1% APRC representative.
Below is for 5 years:
Representative example: A mortgage of £300,000 payable over 25 years, initially on a fixed rate for 62 months at 1.99% and then on our current variable rate of 3.69% (variable) for the remaining 238 months would require 62 monthly payments of £1,270.10 and 238 monthly payments of £1,480.40. The total amount payable would be £432,393.00 made up of the loan amount plus interest (£131,081.00) and valuation fee (£263), booking fee (£999). The overall cost for comparison is 3.1% APRC representative.
Perhaps the 5 year might be better rather than being locked in for the 10 years.
Just have a feeling that these great 2 year fixed rates won't be around for ever. I've been reading on here too and seen Sarnie's name been mentioned so I'll drop him a pm too.
Below is for 10 years:
Representative example: A mortgage of £300,000 payable over 25 years, initially on a fixed rate for 123 months at 2.69% and then on our tracker rate of 3.49% above the Lenders Bank Base Rate for the remaining 177 months would require 123 monthly payments of £1,374.74 and 177 monthly payments of £1,476.77. The total amount payable would be £431,610.00 made up of the loan amount plus interest (£130,481.00) and arrangement fee (£999). The overall cost for comparison is 3.1% APRC representative.
Below is for 5 years:
Representative example: A mortgage of £300,000 payable over 25 years, initially on a fixed rate for 62 months at 1.99% and then on our current variable rate of 3.69% (variable) for the remaining 238 months would require 62 monthly payments of £1,270.10 and 238 monthly payments of £1,480.40. The total amount payable would be £432,393.00 made up of the loan amount plus interest (£131,081.00) and valuation fee (£263), booking fee (£999). The overall cost for comparison is 3.1% APRC representative.
Perhaps the 5 year might be better rather than being locked in for the 10 years.
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