Quote:
Originally Posted by Gibbo
My 5 yr fixed deal has just run out at 4.79%  and I am in the market to remortgage. I have reviewed the market and choosen Halifax and spoken to an advisor this afternoon.
I want to go fixed for saftey and am looking between a 3yr and a 5yr deal.
3 yr = 1st at 3.99% yr 2&3 at v5.99% ave rate 5.32% Booking fee £999
5yr rate constant at 5.69%. booking fee £999
I have a fair sized mortgage and gut feeling is to go for the 3yr but the 5yr spreads the booking fee over 60 instead of 36 months and also gives longer term protection.
The affordability of either rate is not an issue but obviously want to pay the least in the long run without running high level of risks.
Booking fees will not go away in the future and I am looking best overall value.
Anyone got any thoughts. |
I'm in a similar position. I have a 5 year fixed rate of 4.49% which runs out in December.
I've had a look around and the current fixed rates are not that attractive. We have a weird situation at the moment where the banks are doing their best to ignore the bank of england base rate. They obviously feel it should be higher than it is.
The best I can get with my current lendor is a 3 year fix at 5.79% or 5 years at 5.74% with a fee of £399 in each case.
There is a lot of uncertainty at the moment and we are paying for it in these rates. However, I find myself coming back to the information in this graph:
Which reminds me that the rate has been over 6% quite a lot in the last 25 years or so.
I'm pretty risk averse when it comes to mortgages. It's the biggest financial outlay I'll ever have and I have no intention of mucking it up. So I'm pretty sure I'll try to fix for another 3 years if the rate is below 6%. If not, I'll try to ride it out.