If remortgaging in london - is a 5 year fixed mortgage better than a 2 year one?
I currently have a small studio flat near elephant and castle - i think that potentially interest rates may go up in the uk significantly enough to warrent getting at least a 5 year fixed rate at 5.44 % which is ok. what do you think?
Answer
5.44% is a pretty nice
rate at the moment but its
impossible to say what will happen over the next 5 years. one thing to consider is the fees. mortgage companies make their money through set up fees
than interest now. if you take out a one 5year mortgage at a higher rate it may actually cost less than taking out two shorter mortgages at lower rates and paying two lots
of set up fees. i beleive its called the true cost and that is an important factor in my opinion. try the site in the sources to look at mortgages by true cost
