My fixed deal finishes at the end of May. I’ve been keeping an eye on things and have held off doing anything to date. But am thinking that now is the time to secure a deal (with a view to amending it before the deadline if needed). I live on my own, so decision is down to me.
Duration remaining is 14 years. LTV is 37%, so am already accessing the best rates available. Options are:
2 Year Fix - 4.44%
2 Year Tracker - 4.24% (Base Rate + 0.24%)
3 Year Fix - 4.39%
5 Year Fix - 4.04%
10 Year Fix - 4.34%
Am pretty much excluding the 10 year deal.
The additional monthly cost for the 2/3 year fixes and the tracker is around £200 - £210 per month more than I’m paying now. The 5 year fix is around £165 more per month.
Am leaning towards the 5 year fix for peace of mind. With the aim of overpaying small amounts where possible during the term. Does this sound sensible, or is there more merit in considering the first 3 options further?
Am not normally this indecisive, but could do with some outside viewpoints.