Rate Advice

2 year fixed is ending with ICS and I'm having a hard time choosing what to change to. We were fixed at 5.2% and the options we have been given are;

Variable at 3.55%
2 year fixed at 4.05%
3 year fixed at 4.5%
5 year fixed at 5.3%

They all seem quite high compared to other lenders but switching might not be possible as the LTV is now around 95% from what I can make out, plus all the hassle and expense with applying again is a pain...

So I'm trying to decide to gamble and take the variable and overpay (basically to match the 5.2% I'm paying now). Or to choose the 2 year fixed at 4.05% and stick the difference in a savings account, to lump pay at some point.

I guess it all boils down to if/when variable rates will increase and by how much will they increase. If they raise by .5% at any point in the 2 years I'd lose out if I stayed on variable and I'm guessing that will happen...

Thoughts / advice?

thesteve said:

I guess it all boils down to if/when variable rates will increase and by how much will they increase. If they raise by .5% at any point in the 2 years I'd lose out if I stayed on variable and I'm guessing that will happen...

Thoughts / advice?

Click to expand...

Don't try and time the market, nobody can.

If interest rate increases will overstretch you then fix for as long as possible.

If you can comfortably afford an increase in your mortgage repayments then you could opt for a split rate putting a portion on variable and the rest on fixed. This will allow you to pay down the variable part while having the certainty of payments on the fixed part.

[broken link removed]

those rates are'nt that bad.

PTSB 4.65% svr

2yr fixed 5.2%

5yr fixed 5.75%