2 year fixed v 5 year fixed??

kerry13238

hi my current mortgage deal is coming to a end and i cannot decide what to do i have tried to get a mortgage with hsbc and they have turned me down really dont know why cause my credit score is 900 and my my income is enough.
i am currently with the abbey and can only chose from there existing customer products so here is the pros and cons

2 year fixed rate 3.98
fee £300

pros

1. in two years i might be able to change lenders and have a wider choice of products
2. costs less now which would be a help as my kids are 11 and 9 so i can work more in 2 years

cons

1. rates could go up
2. more fees to pay in 2 years

5 year fixed at 5.69
fee £100

pros

1. no what im paying for 5 years

cons

1. monthly payment is higher

what does every body think help would be greatfully apriciated even if its just 5 or 2 no explanation

beecher

what would happen if you did nothing? What rate do you automatically go onto>? Is your Loan to Value high as this may be why HSBC have refused you. What's the outstanding mortgage and the (realistic) value of the house?

kerry13238

loan to value is 64% in two years it should be under the 60% if i did noting it would be 4.24