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5yr fix or 10yr fix?

(12 Posts)
crazycatguy Thu 19-Oct-17 23:02:38

Can do 5 at 1.55 and DP favours this.
Can do 10 at 2.49 and I favour that.

Who's right? My worry is 5 low years then 5 years at a normalised pre credit crunch rate - 10 buys us lots of stability but at a higher initial rate. DP thinks 10 is too long and all the 7s are off the market now.

Wahhh! I hate adulting!

Nix32 Thu 19-Oct-17 23:06:44

We've gone for 10.

Neolara Thu 19-Oct-17 23:08:50

We also went for 10.

PickAChew Thu 19-Oct-17 23:16:48

We're fixing at 10.

Notreallyhappy Fri 20-Oct-17 06:34:59

If the repayment for 10 is a price you can afford it will give you stability of knowing what it'll cost longterm it's surprising how quickly the time goes.

MaisyPops Fri 20-Oct-17 06:44:46

We are going for 5 because we don't kniw where work might take us in 10 years and we are first time buyers so it qould be really tight to try and get the % deposit for a 10 (or we need to buy a significantly smaller house)

If we were buying our 2nd home and knew we would be staying put then we would get 10.

crazycatguy Fri 20-Oct-17 09:11:50

Thanks - this is our third (and hopefully final!) home smile

Polly1308 Fri 20-Oct-17 09:16:39

We fixed for 10

Chasingsquirrels Fri 20-Oct-17 09:20:13

What's the monthly cash difference?
What impact will that have on your life?

JoJoSM2 Fri 20-Oct-17 09:41:10

Depends on your personal circumstances. The extra 1% interest is a lot of money. We’ve fixed for 5 not to pay the extra interest and will be better off for it by a hefty 5-figure sum by the end of the fixed period.

We are also going to make overpayments so a 5 year deal was much better hands down.

If you’re anxious about the future or need that predictably for 10 years, can’t overpay, then fix for 10 despite the premium you’ll need to pay.

crazycatguy Fri 20-Oct-17 10:38:58

Monthly cash difference £98 per month.

JoJoSM2 Fri 20-Oct-17 11:30:57

Sounds like your outstanding debt is around 200k (don’t know the term to know exactly).

With the 5 year fix, you’ll save 10k in interest alone in the first 5 years. If you choose to overpay by that £98 per month (to compare for the same monthly payments), that will be another 6k.

So you’ll be 16k better of at the end of the 5 year fix. However, no one has a crystal ball to know what the interest rates will be at that point or knows if you can overpay a bit more to have even less debt in 5 years’ time. So DH and you need to work it for your situation.

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