Fixed 2 or 5 year?

LookingForward_2

Hi,

We're a first time buyer with a 10% deposit and realise the interest rates on mortgages aren't that great for our position but feel it's time to get on the ladder. My question is......we're looking at a fixed mortgage but can't decide on whether to take out a 2 or 5 year. Is it likely that after 2 years, the interest rates may be better to switch to, or would it be safer to stick with the 5 year rate?

I know it's pretty much guess work but would appreciate some views on which you feel would be best.

Thanks

andrewmp

In my opinion a two year fix is a waste of time, you may as well go on a tracker. I doubt rates will be going up much in the next two years.

Thrugelmir

andrewmp wrote: »

In my opinion a two year fix is a waste of time, you may as well go on a tracker. I doubt rates will be going up much in the next two years.

Also a 5 year fix gives you the ability to budget, knowing what your outgoings will be. Rates over time are only heading one way.

If you wish to save interest, sacrifice some luxuries and overpay the mortgage.

Tax rises could impact as much as interest rises over the coming years.