Fixed rate 3 year vs 5 year

[masterboy123]

Hi,

I am in the dilemma of fixing mortgage rate between 3 years @3.2% vs 5 years @3%.

Any advice what would be a better idea?

And also if it's worth breaking after 2 years if there is a new rate in the market?

Any advice or comment is appreciated.

 

[Brendan Burgess]

No one can answer that question.

The break fees tend to be small, so on balance, I would fix for 5 years, and if rates come down, check out the cost of breaking.

Brendan

 

[Boyd]

Ulster have a 4 year fixed rate of 2.6%, up to 90% LTV. I'd be going for that if you fit into that LTV rather than either of your options above.....

 

[masterboy123]

Ok i appreciate your response
Have a good Sunday.

No one can answer that question.

The break fees tend to be small, so on balance, I would fix for 5 years, and if rates come down, check out the cost of breaking.

Brendan

 

[masterboy123]

Well, I am getting 2% cashback total mortgage price and 2% cashback on monthly repayments. In addition, 2% from Sky direct debit and electricity.

Given break up fees isn't great. I will stick to PTSB.

Thanks for your suggestion

Ulster have a 4 year fixed rate of 2.6%, up to 90% LTV. I'd be going for that if you fit into that LTV rather than either of your options above.....