Simple question: our 2 year fix expires at the end of March. Current lender valuation was good but not as good as estate agent valuation and not quite enough to get us over the 65% threshold (it's about 67% LTV) that we would have needed for a 5 year fix at 1.85% with a £999 fee.
From the range of 65-75% deals available to us our broker has found the best 2 year fix of 1.69% with no fees apart from the broker fees with Accord or 2.14% fix for 5 years with £999 fee.
Choices are: take the 5 year fix now or take the 2 year fix with no fees which will get us down to around 62% LTV at today's valuation by the end of the deal and then assuming the base rate hasn't moved much get a much better 5 year fix.
A few rough calculations suggest the base rate would have to go no higher than 1% after 2 years for the 2 year deal to be the best option but that does assume that 5 year fixed rates would move broadly in line with the base rate.
Also need to consider that the deal would end in Mar 2019 right on top of the expected Brexit. No idea how that influences things.
I have looked at tracker rates and overpaying to try and get the balance down quicker and moving onto a 5 year fix but the good tracker rates tend to have high fees that make it not worth it for such a short period.
What would you do?
From the range of 65-75% deals available to us our broker has found the best 2 year fix of 1.69% with no fees apart from the broker fees with Accord or 2.14% fix for 5 years with £999 fee.
Choices are: take the 5 year fix now or take the 2 year fix with no fees which will get us down to around 62% LTV at today's valuation by the end of the deal and then assuming the base rate hasn't moved much get a much better 5 year fix.
A few rough calculations suggest the base rate would have to go no higher than 1% after 2 years for the 2 year deal to be the best option but that does assume that 5 year fixed rates would move broadly in line with the base rate.
Also need to consider that the deal would end in Mar 2019 right on top of the expected Brexit. No idea how that influences things.
I have looked at tracker rates and overpaying to try and get the balance down quicker and moving onto a 5 year fix but the good tracker rates tend to have high fees that make it not worth it for such a short period.
What would you do?
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