Q: We first-time buyers and looking for certainty. Mortgage will be based on salary of my husband when I am independent and do not have a full set of accounts. We are cautious by nature, so weve thought about the choice of a 5-year fixed rate mortgage (5.5%, no HLC, ￡ 699 system fee ￡ 500 cashback for legal fees, ￡ 200 homebuyers survey / valuation thrown in). But I wonder whether we should go for a 3-year deal instead. That would give us still a certain stability, but there is not much difference in the rates (boo!). It was me three years to try and work my new business. And although we are fairly settled in the current region, we consider displacement (overseas or to another part of the country), before we hit our 40s in 3-5 years time “(so the shorter term fixed rate more flexible option). On the other hand, the new house we buy has to work, we can choose to spread over a period of five years. Just wondering, what would you do?
I'm very tired of searching for my property and with interest rate going to rise in MAY 07, I lost all hope of finding that property. I think I'm going to give up and wait and hope something happens to the property market.
The current market trend is totally unacceptable!!!
Anyway enough of my moaning and !!!!!ing about current property market.
I will go 3 year fixed because if you want to sell up and move property for whatever reason, then you have an oppurtunity to do it. Also you don't have to pay any ridiculious early repayment fee.
That product you quoted sounds a lot like what we've got – is it Bristol & West by any chance?
Anyway, we decided to fix for three years because we bought our house under value with a 5% deposit, so the thinking is in 3 years time our LTV will be considerably better and we could shop around for an even better rate (I think thats why we did it… it was a bit of a blur at the time!!!)