Adam M

quick question,

fix mortgage at 5.15% for 3 years or 5.35% for 5 years?


these are the only two options as I am not leaving my current lender.

No restrictions on moving house, am 27 years old, getting married and not looking to be paying the thing off within 5 years. If anything will be moving up the ladder and probably borrowing more.

PCatWork

I would probably go for the 3 year fix but it's always a bit of a gamble.

(The first time I took out a fix I ended up paying over prevailing rates for most of the duration - this time I took 5 years at 4.95%, and so far I have been signifcantly under prevailing rates).

davegtt

if your looking to move up the ladder Id be more inclined to go for the 3 year deal if it doesnt tie you in for aslong as the other, give yourself as much options as poss when looking to the future

Old_Fart

Depends on your risk appetite to some extent. Does 5 years of knowing absolutely what your payments are going to be appeal?
I can tell you that the 3year and 5 year interest rate swap prices are almost identical, which means the 3 year deal is better 'value'
In fact the 10 year rate is the same as the 2 year so the market isn't pricing any hikes in for the foreseeable....
I'd take the 3 year deal.
Cman

the moose

deleted as I realised I was saying almost exactly the same thing as the previous poster!

Flatcapdriver

Provided the redemption penalties aren't too high, then I'd go for the 3 year deal as this at least leaves you with less expensive options if you do have to move.