2yr or 5yr

emsie30

Hello

Current Natwest mortgage comes to an end in June and am really stuck as to what to choose. We have decided to fix but do we go for Natwest 2yr = 3.25% or 5yr = 3.95%. Any advice would be greatly appreciated.

Thanks

The_J

Well I'd need to know a lot more about you but under 4% for a 5yr fix rate is very good from a wider historical perspective. Given that you are looking at fixed rates presumably you are after security and a 2yr fix isn't that secure.

emsie30

Thanks for your reply. I was tempted to look at variable rate mortgages but the recent hike has scared me a bit. Do you reckon these are still a good option despite this?

The_J

Yes, these are good rates.

harvey115

I would also go for a 5 year fix if I was getting a fix and in this case its very clear to go for 5 years. As long as you are aware that the fix period will have Early Repayment Charges attached to it, so over 10% yearly repayments will have further charges attached to it if you are planning to overpay large amounts.