2 Year Fixed at 4.89% Vs 5 Year Fixed at 5.24%

talksalot81

StratApproach wrote:

Personally I wouldn't do either - I've just changed to a 5 year discount (fully flexible) with no Early Repayment Charges. The rate is currently 5.29% and only had a £99 product fee.

It enable me to overpay and wait it out to see what happens in the marketplace before fixing again. Even 'if' the rates go up next month, they can come down just as quick over the next few years.

If pushed for an answer - I'd do the shorter term assuming the proudct fee wasn't high.

The real point to fixing a rate is affordability and security of knowing what you are going to be paying each month.

StratApproach

I agree with mystic trev. There is very little in the way of evidence suggesting anything other than rate increases.

Accepted you may be in a position where you have loads of cash and you can afford to gamble, but most people will not be in this boat and they would be terribly advised to get into a deal which they cannot be very confident to be able to pay.

cwcw

Thanks for your replies/ votes - have some thanks on me.

The purchase is very much hanging in the balance anyway now, but if it does progress I think I will switch to 5 year fixed to have the peace of mind of knowing exactly what the mortgage will cost for the next 5 years and without having to worry about remortgaging in 2 years time.