Variable or Fixed?

[thedogsgottago]

Hi we are moving house to a much more expensive one, we are burrowing an extra £90,000. Our mortgage is self cert the rates for burrowing more arnt great, its either 6.99 fixed for 5 years or 4.5 variable (4 above base) I read today that interest rates might go to 2% by the end of next year, there is an arrangement fee of 195 for the fixed deal and no arrangement fee for variable, what do you think is the best one to opt for?

Is there a penalty for switching out of either one?

the variable is 2% in first year, fixed is 5% in first 5 years, though our current mortgage has still got 3 years till the end of the redemption period, also cos we are self cert getting another mortgage from another lender is gonna be nigh on impossible.

There are no self cert mortgages avaliable are you sure the broker did not just tweak your income with a high street lender

They're not currently banned sarkin, they're proposals at present due to come into force next year.

I already have a self cert mortgage so Im just topping that one up, but your right they dont do self certs for complete new mortgages, well at least with Bank of Ireland. I cant get a standard mortgage cos a large part of our income they wont take into account (rental) and my partners self employed. I think Im gonna go fixed, cos even though it works out £200 more a month at least I know what Im paying and if interest rates go through the roof I wont be affected. Its a tough one though cos we are stretching ourselves to the limit to get this house....