Mortgage - 2 or 5 yr fix?
Discussion
Hi chaps,
Last time I renewed my mortgage I was going through a divorce in the height of the financial turmoil so had to take what I could get, this time round I'm in a better position to make a decision, this is what I have -
£320k required @ 63% LTV (3 pesky PC)
I've got these offers -
2yrs fixed @ 2.19% - £1,386.47 /mth
5yrs fixed @ 2.99% - £1,516.31 /mth
I have no desire to sell this house in the medium term, should I wish to upgrade I'd just buy another and keep this one running for the kids.
A) are the above figures any good?
B) if so, which to go for?
Thanks in advance,
Donny
Last time I renewed my mortgage I was going through a divorce in the height of the financial turmoil so had to take what I could get, this time round I'm in a better position to make a decision, this is what I have -
£320k required @ 63% LTV (3 pesky PC)
I've got these offers -
2yrs fixed @ 2.19% - £1,386.47 /mth
5yrs fixed @ 2.99% - £1,516.31 /mth
I have no desire to sell this house in the medium term, should I wish to upgrade I'd just buy another and keep this one running for the kids.
A) are the above figures any good?
B) if so, which to go for?
Thanks in advance,
Donny
No, haven't paid a penny - have a month to decide.
Both of the above rates are less than I'm paying and if I go with either I'll pay an additional 20% monthly overpayment on top.
I had a read of some other related threads on here, what's the product where you throw the mortgage in against your other assets? I could throw £75-100k into the current account if this would make a significant difference.
There would be no adverse tax liability to do the above for me should it be advantageous.
The only way is up when it comes to interest rates, it's just when they need to stop the kettle from boiling IMO.
Both of the above rates are less than I'm paying and if I go with either I'll pay an additional 20% monthly overpayment on top.
I had a read of some other related threads on here, what's the product where you throw the mortgage in against your other assets? I could throw £75-100k into the current account if this would make a significant difference.
There would be no adverse tax liability to do the above for me should it be advantageous.
The only way is up when it comes to interest rates, it's just when they need to stop the kettle from boiling IMO.
Previously I always thought about the here and now, the difference being a couple of grand a year which is neither here nor there, but why lose it for nothing if going to 5 years.
The flip side being without a crystal ball, who knows when rates will increase and by how much, so this question is more opinion based; a 1% rise will cost me another £140 /mth or so, again, zero impact to me, but maybe £3k extra over term if I go for two years instead of five - that's the insurance for the cars for a few years - but perhaps I'd have already paid more if I went for the 5 yr option.
Either way it's no issue but I thought you chaps would unanimously say x or y.
Is there a big saving in lumping your cash in the current account against the mortgage draw-down and can you get at it quickly if required?
Thanks for taking the time to explain.
The flip side being without a crystal ball, who knows when rates will increase and by how much, so this question is more opinion based; a 1% rise will cost me another £140 /mth or so, again, zero impact to me, but maybe £3k extra over term if I go for two years instead of five - that's the insurance for the cars for a few years - but perhaps I'd have already paid more if I went for the 5 yr option.
Either way it's no issue but I thought you chaps would unanimously say x or y.
Is there a big saving in lumping your cash in the current account against the mortgage draw-down and can you get at it quickly if required?
Thanks for taking the time to explain.
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