We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Fixed Rate Mortgage 2yr or 5yr

We are due to remortgage in october and cant decide whether to go for a fixed rate for 2 years of 5 years. The broker has advised us to go for the five year deal but we're unsure. I would appreciate your advice:confused:

Comments

  • koexelek
    koexelek Posts: 7,847 Forumite
    Advantages of a five year fixed - no more arrangement fees to pay for five years. Peace of mind that payments won't go up for 5 years

    Disadvantages - if rates come down, you are stuck on the higher rate.

    Two years used to be a good time to fix for, as if you did " get it wrong" you were only tied in for the two years. But the high arrangement fees that lenders now charge make this a costly business each time now..
    important what you plan to do within the next five years as well. If you move though, most fixed rates are portable from one property to the next
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.9K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.