Mortgage Advice

[Toots22]

Hi, looking for advice from anyone who knows about these things!

I’m very lucky I know (though I’ve worked hard at it) but I have 3 years and 10 months left on my mortgage.

Do I at this stage take out a 2 year mortgage deal, and risk a variable rate for the remaining 1 year and 10 months, hoping mortgage rates drop from today’s rates, or do I go for more stability and potentially higher payments at a 4.4%-ish rate and take it for 3 years and only have a variable rate for the last 10 months (and maybe try and overpay to take the 10 months down)?

Any thoughts appreciated! Thank you!

I guess it depends on how much it is each month. I imagine the difference between a 2 year/3 year fixed won't be very much as you have so little time left on your mortgage.

The other option you might want to look into is increasing the amount you pay per month to bring it down to a 2 year fixed. Saves faffing around with a variable at the end.

Worth speaking to a broker to see what would be best for you.

Thanks so much, appreciate your reply. The broker won’t give us any advice either way, he’s just presented us with the options and said it’s our choice. It won’t make much difference to the monthly payment either way whilst on the fixed rate but if interest rates fall or rise by even a couple of a percent, it could make a significant difference eg £200 more or less each month. I think the 3 year will give us more stability and we just try and hammer the overpayments to save us having the months at the end on a variable rate. Thanks again

I wouldn't want to go onto a SVR so would probably take the 3 year fixed rate and try to make some overpayments if possible so at the end of the 3 years there is barely anything left to pay off.

I'd go for the 3 year fix as not much difference between 2 and 3 year fixes ATM. Then I'd work hard to overpay the 10 months.