3 or 5yr fix?

dotexe

Hi.

We're FTB looking to buy a property that will hopefully be our home for a long time. So with this in mind combined with how seemingly the only way is up for mortgage rates; I figured fixing for the longest time possible seemed the safest bet.

I'd be paying £20 more per month for a 5yr fix rather than a 3yr. Peanuts I thought for that added security.

However reading the key facts the exit fees did jump out at me and made me wonder. 5 years is a long time. What if we have a change in circumstances? What if we decide we need/want to sell/move? Now I'm not so sure.

Thoughts anybody?

RenovationMan

Only you will know if the house will satisfy your requirements for the next 5 years and only you know your own position on risk - i.e. whether you'd feel better to fix for a longer time frame.

I personally think we'll have low rates for at least 5 years and definitely for the next 3 years so in your position I'd be looking at a discounted variable rate or BoE tracker. As I say though, it's all about your own risk profile.