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Hi, I'm currently weighing up Avant fixed duration between a 4 year (2.05%) and 7 year (2.35%).
I suppose this is really a call on what ECB does and whether my future rate after a 4 year fixed period would offset and savings I make initially by going with the lower 4 year rate. I've estimated that the prevailing rate in year 5,6,7 would need to go to 2.8% to wipe out the savings I'd make years 1-4 if I went for the 4 year now rather than the 7 year rate.
Aside from predicting what ECB might do to rates in 4 years time, are there any other factors I should take into account when deciding the duration of my fixed mortgage?
Many thanks.
I suppose this is really a call on what ECB does and whether my future rate after a 4 year fixed period would offset and savings I make initially by going with the lower 4 year rate. I've estimated that the prevailing rate in year 5,6,7 would need to go to 2.8% to wipe out the savings I'd make years 1-4 if I went for the 4 year now rather than the 7 year rate.
Aside from predicting what ECB might do to rates in 4 years time, are there any other factors I should take into account when deciding the duration of my fixed mortgage?
Many thanks.