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2 Year Fixed Rate or 5 Year Fixed Rate Mortgage

Last post Tue, Jun 19 2007, 11:13 PM by Tenacious T. 1 replies.
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  •  Tue, Jun 19 2007, 11:13 PM

    Re: 2 Year Fixed Rate or 5 Year Fixed Rate Mortgage

    You should consider how long you expect to be at this property, if its less than 5 years then the 2 yr is the best option because it gives you more flexibility in the future, if you think in 5 years time you will still be at this place then go for the 5 yr.

    No one can say what rates will be in 5 years unfortunately, But short term the industry expects them to increase again by 0.25 this year.

    Good luck with your new home !!

     

    • Post Points: 5
  •  Wed, May 23 2007, 12:29 AM

    2 Year Fixed Rate or 5 Year Fixed Rate Mortgage

    To the Expert,

    I am offered a flat in a Newbuild Homebuy scheme (formerly part buy part rent).  I can only afford 40 percent of the property value, the remaining 60 percent is to be rented plus the service charge on top.  I am now in the stage of deciding whether to go for a 2 year fixed rate or 5 year fixed rate.  I am thinking of going for the 5 year fixed rate but the drawback is that if I go with this, by the end of the term, it will be Olympics 2012.  Do you think the interest rate will be higher by then?  What will be the possible advantages and disadvantages if I go for the 2 year or 5 year fixed?  Can you also refer a lender that deals with this type of scheme and offers the lowest interest rates? Please advise. 

    • Post Points: 20