David Posted November 24, 2014 Report Share Posted November 24, 2014 (edited) Any financial gurus here? I can't decide whether to fix for 3 or 5 years. I am leaning towards the latter on the assumption that the inevitable base rate rise will be larger than the difference? Dave Edited November 24, 2014 by David Quote Link to comment Share on other sites More sharing options...
monkeyseemonkeydo Posted November 24, 2014 Report Share Posted November 24, 2014 That's what we did 4 years ago and are still waiting for it to rise! It's a gamble whatever you do. Quote Link to comment Share on other sites More sharing options...
David Posted November 24, 2014 Author Report Share Posted November 24, 2014 That's what we did 4 years ago and are still waiting for it to rise! It's a gamble whatever you do. True, I doubt you win either way in the long run... Quote Link to comment Share on other sites More sharing options...
Tom Booth Posted November 24, 2014 Report Share Posted November 24, 2014 We did, just so we knew where we were for the first period of adjustment. It's just one less thing to worry about we thought. Quote Link to comment Share on other sites More sharing options...
AdamR28 Posted November 24, 2014 Report Share Posted November 24, 2014 True, I doubt you win either way in the long run... We did, just so we knew where we were for the first period of adjustment. It's just one less thing to worry about we thought. Both of the above! Quote Link to comment Share on other sites More sharing options...
David Posted November 24, 2014 Author Report Share Posted November 24, 2014 We did, just so we knew where we were for the first period of adjustment. It's just one less thing to worry about we thought. I think for this reason alone it's worthwhile. Quote Link to comment Share on other sites More sharing options...
Tom Booth Posted November 24, 2014 Report Share Posted November 24, 2014 We looked at it as if we know what we're paying for a period, we can set our budget out accordingly whilst we get used to paying the bills etc. plus you've always got the option of over payments if you'd like. Quote Link to comment Share on other sites More sharing options...
Luke Rainbird Posted November 24, 2014 Report Share Posted November 24, 2014 That's pretty much my thoughts after visiting a mortgage advisor and having a good old chat last week too. Unless you're looking to move/remortgage sooner for whatever reason then realistically the 5 year is the more convenient option. Quote Link to comment Share on other sites More sharing options...
N.Wood Posted November 24, 2014 Report Share Posted November 24, 2014 Mines on a 3 year but it's a relatively small amount so not quite as much of an issue. Mine jumps from 2.28 to 4.54% after the 3 years, but I will be shopping around at that point anyway so sort of irrelevant. Quote Link to comment Share on other sites More sharing options...
Luke Rainbird Posted November 24, 2014 Report Share Posted November 24, 2014 That's another factor to take into account though remember, as if you choose to remortgage you may well end up paying another round of fees. Not necessarily an issue and not necessarily expensive though Quote Link to comment Share on other sites More sharing options...
craigjames Posted November 24, 2014 Report Share Posted November 24, 2014 (edited) I've just gone for a 2 year fixed, gives me a bit of stability for a bit before I remortgage and shop around. Shorter term also gave me a lower rate so I can afford to over pay, which should be beneficial come remortgage time. Cliché, but its all swings and roundabouts. Edited November 24, 2014 by craigjames 1 Quote Link to comment Share on other sites More sharing options...
monkeyseemonkeydo Posted November 24, 2014 Report Share Posted November 24, 2014 As above we went for 5 year so we knew what we'd be paying for that period with no unknowns. Worked against us in the long run as we've been tied into a 5.29% rate for 4 years now with another to go but you roll the dice to takes you chances... Will probably be a bit less risk averse this time round but I'm also not up for paying £995 fees every couple of years to go to a new product!! Edit: over 20 years repayment and we've been overpaying a bit on the way through to take that period down a touch. 1 Quote Link to comment Share on other sites More sharing options...
dann2707 Posted November 24, 2014 Report Share Posted November 24, 2014 This thread scares me I don't want to grow up. Quote Link to comment Share on other sites More sharing options...
Simpson Posted November 24, 2014 Report Share Posted November 24, 2014 I just went for 5 years. More importantly than anything I know it ties my missis down for 5 years so she wont be hassassing me for a bigger place for 5 years. On a more serious note - you can increase the value of your mortgage if you move with the same providor at the same rate and the get out is only like 3% house value or something. Quote Link to comment Share on other sites More sharing options...
shercofray Posted November 25, 2014 Report Share Posted November 25, 2014 (edited) the get out is only like 3% house value or something. The get out is normally 3% of the existing mortgage amount, not the house value. Edited November 25, 2014 by shercofray Quote Link to comment Share on other sites More sharing options...
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