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Mortgages, variable or fixed?!

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CherryPie
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Mortgages, variable or fixed?!

Postby CherryPie » Mon Feb 20, 2012 1:35 pm

Ladies please help me decide, we have been offered a 2 year variable currently at 4.49% (+£1300 fees) or a 5 yr fixed at 5.2% (+250 fees) is variable too much of a risk? Appreciate any opinions/experiences please xx

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ladybird
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Re: Mortgages, variable or fixed?!

Postby ladybird » Mon Feb 20, 2012 1:39 pm

We have a 5yr fixed, after taking advice - guestimates at the time suggested that things will get worse before getting better and that was the safest way to get through. We always get fixed as we like to know exactly what is going out each month and we usually go through Mortgage Talk as we've found them good in the past.

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Shaunie
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Re: Mortgages, variable or fixed?!

Postby Shaunie » Mon Feb 20, 2012 1:52 pm

We moved in here 2yrs ago & took a 2yr fixed so we knew exactly the amount going out each month because we were not in a position to risk variable so I guess on a personal level it depends on how you are financially and if you can afford any changes.

We recently re-mortgaged due to financial issues and we needed further security for a while longer and again have a fixed period.

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girlinleeds
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Re: Mortgages, variable or fixed?!

Postby girlinleeds » Mon Feb 20, 2012 2:16 pm

At the moment were just on the banks standard variable, when it came to renewing the intrest rate was high and we could have fixed at 7.5% but im glad we didnt now. but because were not tied in we could just take out a fixed rate when the rates start to rise x

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ems101
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Re: Mortgages, variable or fixed?!

Postby ems101 » Mon Feb 20, 2012 2:21 pm

We went for a 4 yr fixed as our mortgage payments were quite high and i was on mat leave, so we knew we needed to know what our major outgoing was going to be for the next few years. I think the uncertainty of the variable was just too much anxiety esp when you have little ones!

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CherryPie
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Re: Mortgages, variable or fixed?!

Postby CherryPie » Mon Feb 20, 2012 2:25 pm

Right, I have made up my mind at last! Fixed it is, thank you for helping me decide :) xx

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Miss_Purple
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Re: Mortgages, variable or fixed?!

Postby Miss_Purple » Mon Feb 20, 2012 3:31 pm

I would agree fixed, rates are unlikely to get much lower than 4-5% over the next 5 years, and the amount of fees is also pretty big on the variable. You only need a small rise in the base rate and your payments could shoot up. We have been on fixed in the past, we are only on variable at the moment as I am waiting for DH to decide how much he wants to pay off before we fix again, and actually for us at the moment there isn't much difference (we are on 4.99% until we remortgage).

that reminds me - must nag DH to get it sorted!

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docmaggoo
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Re: Mortgages, variable or fixed?!

Postby docmaggoo » Mon Feb 20, 2012 5:09 pm

We just got a fixed rate mortgage.
Our independent financial advisor said the same thing : rates are not going to get any lower but they can (& will rise)
:shock: at the fees for your variable!

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KimmyM
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Re: Mortgages, variable or fixed?!

Postby KimmyM » Mon Feb 20, 2012 5:14 pm

We are variable at the moment but our rate is much lower than that.
We were fixed for three years and had friends paying £50 a month whilst we still paid £780. If we heard a raise was on the way we would fill an app probably.
I guess it depends on circumstances at the time.

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