Caporegime
5 years with overpayments was my preference.
Why because the interest you pay is on the outstanding amount
The outstanding amount changes every month.
I'm on a 2 year fix at the moment. I pay exactly the same amount every month but the breakdown of where that money goes changes each month as the capital is paid off. Each month the amount that goes on servicing interest reduces slightly and the amount going towards paying off the outstanding amount increases slightly.
MPs only care about their second jobs and making their friends and themselves money. If interest rates went up significantly there would be riots.
So, just some basic information on what was offered.
On an outstanding mortgage of £47k I have been offered 10yrs fixed at 2.39%, so paying back £52,920 over the term with £0 upfront transfer costs.
If I was willing to lock in for just 2yrs I could get 1.69% with £1k arrangement fees or 1.99% without.
The question I'm answering as I'm sure many experts are too is what will the interest rate be in 2yrs time - is it worth me saving <1% in interest for 2yrs; but then finding I cannot get 2.39%
The question I'm answering as I'm sure many experts are too is what will the interest rate be in 2yrs time - is it worth me saving <1% in interest for 2yrs; but then finding I cannot get 2.39%
So, just some basic information on what was offered.
On an outstanding mortgage of £47k I have been offered 10yrs fixed at 2.39%, so paying back £52,920 over the term with £0 upfront transfer costs.
If I was willing to lock in for just 2yrs I could get 1.69% with £1k arrangement fees or 1.99% without.
The question I'm answering as I'm sure many experts are too is what will the interest rate be in 2yrs time - is it worth me saving <1% in interest for 2yrs; but then finding I cannot get 2.39%
People always come up with reasons interest rates cannot rise. Look at the US, similar rates to us 2 years ago, now 2%. No riots there, wouldn't be riots here either. I don't remember any riots when mortgage rates went to 17%.
So, just some basic information on what was offered.
On an outstanding mortgage of £47k I have been offered 10yrs fixed at 2.39%, so paying back £52,920 over the term with £0 upfront transfer costs.
If I was willing to lock in for just 2yrs I could get 1.69% with £1k arrangement fees or 1.99% without.
The question I'm answering as I'm sure many experts are too is what will the interest rate be in 2yrs time - is it worth me saving <1% in interest for 2yrs; but then finding I cannot get 2.39%
I see fixing as like an amateur thinking they know better than a pro, or a gambler thinking they can beat the house.
Variable all the way for me, it's cheapest now, and allows unlimited overpayment too.
Second is the minmax maxmin question, do you want to minimise the maximum you will pay (then take the 10 year fix) or maximise the minimum you may pay (take the lowest rate you can get at any one time)
My only other tip is never ever listen to Psycho Sonny, his advice is always short fix.
I don't think all variable rate mortgages allows unlimited overpayments.
Sorry but that seems a little bit unfair, granted I'd not take his advice re: Chiropractors but he's made a fairly reasonable couple of posts in this thread.
Also I think you meant to type "minimise the minimum" when referring to taking the lowest rate possible not "maximise the minimum". Though I'd hope that that implication of typical fixed and variable rate deals was rather apparent to the OP.