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Please share your views with the re-mortgage deal

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Please do advice as to which option is better, Thank you.

We have a mortgage with Woolwich and are completing the fixed rate period on 28th Feb 2013 and are moving to a 2.49 + bank of England rate= 2.99 % for the rest of our mortgage period (23 years). We got this mortgage rate through London and Country. They are offering us a new mortgage deal with Woolwich for 2 year fixed of 2.49% and then will move on to 3.39% +bank of England rate. There is no application fee. I will be able to make a saving of around £50/- per month for 2 years with the new mortgage deal, but after 2 years, the interest rate would increase to 3.89% minimum. I am not sure if this new deal will be beneficial for us in the long term.

Your views are greatly appreciated.

Kind Regards,
Ed.

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