Quick question.

Gorgeestwo

Hi
We are in the early stages of moving house (offer accepted on our house and have made an offer today on a house for ourselves, so don't know if its been accepted yet) but have spoken to Abbey today as our mortgage is with them already and we've been offered a 2yr fixed rate at 3.45%, no valuation fee, £495 added to the mortgage but £250 cashback. The 5yr fixed rate they offered was over 5% with a valuation fee too.

Although we would have prefered to fix for longer than two years, it seems such a good offer. I was just wondering what others thought as we are relative novices to all this

Thanks in advance.

Thrugelmir

There's no right or wrong choice. Interest rates in the longer term will rise. What will they be in 2 years time? No one knows.

Remember in 2 years time you will incur further fees for a another product.

One option could be to take the 2 year fix but overpay your mortgage as much as you can during that period. At least you will reduce your capital balance outstanding.

If you are want the peace of mind of knowing your monthly outgoings the 5 year fix is the option to choose.