Which mortgage rate would you take?

[magicalkitty]

Five year 1.99% fix is coming to an end in 6 months sob

At the moment the deals I can get with my lender (without the £999 fee) are:

5.99% fixed for 2 years

6.24% tracker for 2 years

5.89% fixed for 3 years

5.34% fixed for 5 years

5.24% fixed for 10 years
(Or 4.99% with a £999 fee)

Which would you do? I'm tempted to fix for only 2 with the hope it will come down but of course that is more expensive and no guarantees things will improve either.

It depends on how much your mortgage is, ie would you save more than £999 over the term of your deal?

Also, with the 10 year fix are you locked into ERC for 10 years? We once had a 10 year fix that we only had to pay ERC for the first 5 years, then could leave.

I would be tempted to fix for 5 years as you will know what you are paying. Hopefully its better in 5 years. 🤞🤞🤞

We have just fixed for 5. We can absorb the increase and I'd rather be in that position, risk averse!

5.89 for 3 years.

What's the SVR? Is it worth sitting on that for an extra 6 months when your fix ends? That would take you to next summer and maybe a clearer picture

I would go for the 5 years. It's unlikely to come down much over that period. You also have security.

We have been offered a similar 5 year fix which we are taking. It feels like the most sensible option, as there will be time to see what the rates do but reduces the risk of being subject to further increases for a while. Plus if you apply and get a deal now you can always change your mind if rates improve and apply elsewhere.

I'd go for 5 years. These rates now are not outside of the average when you look at mortgage rates over the long term. I don't think on 2 years they'll be substantially different.

I was in a similar position earlier this year and went for the 5 year one with no fee

I wouldn't fix at all. Rates are forecast to come down soon.

We're in the exact same position, 1.95% ending 31st Dec. We've ended up getting an offer for a 2 year fixed with £999 fee at 5.8%. The new payments want to make me vomit but I'm hopefully they'll go down a bit by the time we come to it again.

I said. soon.

Hang fire and get another quote in 5 months.

A quick google says rates are due to go up another 0.5% by Spring 24 and then reduce to c.4% over the next 5 years

We've just agreed to a 5 year fix at 5.78% (increase of just over £100 a month, which we're overpaying by just now anyway). We'll go back to them before due to start to see if anything better available (which they have agreed/suggested we do)

Id fix for 2 or 3 years

£97000 left to pay over 12 years

There will be two more 0.25 rises a trader told me

Similar position here and our broker (who we know well) has advised 3 year fix - also 5.89%.