2 years ago my sister and her partner re-mortgaged (40K over 10 years), at the time they took out a fixed rate repayment for 2 years. they have now got a letter giving the them the following fixed rate choices:
1. One year fixed at 3.55% (3.65% typical APR)
2. Two year fixed at 3.59% (3.65% typical APR)
3. Five year fixed at 3.99% (3.85% typical APR)
The letter doesn't state but I think she got confirmation that the variable rate is currently at 3.45%.
What is their best option - Take the variable for the next year or two or opt for one of the fixed rate terms and if so which one.
1. One year fixed at 3.55% (3.65% typical APR)
2. Two year fixed at 3.59% (3.65% typical APR)
3. Five year fixed at 3.99% (3.85% typical APR)
The letter doesn't state but I think she got confirmation that the variable rate is currently at 3.45%.
What is their best option - Take the variable for the next year or two or opt for one of the fixed rate terms and if so which one.