Fix for 2 or 3 years?

MARKSPICE

Hi, I am in the process of buying my first property. - The best mortgage deal I can get is 5.09% repayment over 2 or 3 years.

Part of me thinks it would be best to fix for 3 years as I know exactly what I am paying for this period, but I am really not sure. Can anybody with a bit more mortgage knowledge give me some advice?

Thanks

Cannon_Fodder

My personal preference would be 5 years. I know the deal would not be quite as good, but my reasons are;

- it eliminates a re-mortgage fee over the life of the mortgage.
- it get you further into the future, when IRs could be problematical from the bail-outs, QE, borrowing etc, all coming home to roost in a year or two...

If your finances don't stretch to a 5yr deal, the 3yr option is better than 2yr.

Partly as it saves half of a fee, partly for an extra (hopefully) pay rise to help afford the re-mortgage.