I have 10 years left on a mortgage of £34000. Should I being opting for a 2 year fixed rate of 3.99% with no fees or looking at a 5 year fixed rate?
Northern Rock and Woolwich are two of the Lenders with 3.99% 2 year Fixed rates with no fees, but neither of these make our Best Buys because there are better rates available. Now whether you should be opting for a 2 or 5 year Fixed depends on what you think will happen to interest rates and how much of a premium you are prepared to pay now for the peace of mind a fixed rate can bring.
At Charcol we believe that whilst interest rates will rise they will not do so quickly and that 5 year Fixed rates are currently overpriced. We also believe that 2 year Fixed rates are overpriced and it is unlikely that the Bank base rate will increase sufficiently to make these worthwhile. Of course forecasting rate movements is not an exact science and the next set of economic figures could change the whole outlook.
For this reason I believe you would benefit from talking to one of our consultants. They can conduct a full factfind and look at your whole situation, including your attitude to risk before making a personal recommendation.
Please call on 0197 851 8386 and tell the consultant the date and title of your question.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.
John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.