Mortgage Advice gratefully received

[Dollygirl2008]

Hi, although I'm not a first time buyer, I am a now doing this on my own after my divorce. I've got the following information from my mortgage advisor, but, although I can see pros and cons for both, I'd be grateful for advice. I have a gut feeling though so your thoughts would be appreciated:

2 year fixed
Halifax 1.03% fixed until 30/02/2019
23 years (max term) full repayment including the arrangement fee.

Santander 1.19% fixed until 02/10/2019
28 years full repayment including the arrangement fee.

5 year fixed
Natwest 1.74% fixed until 30/11/2022,
23 years (max term) full repayment including the arrangement fee.

Santander 1.79% fixed until 02/10/2022,
28 years full repayment including the arrangement fee.

Can you afford the repayments of the 23 years easily? I'd probably go for 5 year fix and 23 years. But then I'm pretty risk averse

Completely get what you're saying. If I went for 5 year fixed, I would probably need to go for 28years, which is great as I'm mid-forties!! AARRGGHH I didn't think I'd be in this position!!! However, I'm also of the opinion that I'd rather than the money now and not worry about the future (too much) as who knows what's round the corner. Maybe a millionaire!!!???

It's precisely because you never know what's the corner that I'd would go for 23 over 28!
Or at least if I went for 28 I would overpay the amount needed to make it a 23 year term.

Depends on the amount of repayment too, for me. On my repayment the difference between those interest rates isn't much in actual pounds. Therefore, I would feel I wasn't paying much for the longer fix - so might decide it was worth the price of knowing they wouldn't change.

Also depends on how much I was pushing myself on the repayment amount. If the 23 was manageable, I'd do that. If it was to the wire, I'd take the 28 for comfort but overpay to the amount of the 23.

I'd probably take the 5 year 23 year fix, and try to overpay that, from those choices. But not without more info!

Thank you so much for your advice - it really helps, cheers

How much are the arrangement fees?

I fixed for 10 years following my divorce to help me budget and to avoid stress of interest rates rose. Of course they came down during that time but I would still do the same

We just fixed for 5 years as the signals are interest rates will go up (last Bank of England vote) and these 1% rates are so low they can't really go down.... that said maybe if you overpay on the 2 year you might be better off. It depends on the size of the debt.