2yr vs 4yr fixed rate mortgage

sterl1ng

Originally I was thinking of getting a 2yr fixed mortgage but speaking with a mortgage adviser at an estate agents they said if I plan on staying in property for 5yrs (however my broker suggested 2yrs!) odd then better to go with long term as more safe so kind of thinking of the 4yr though slightly higher rate making my payments about 35 quid more each month but I wonder if its worth doing as maybe rates will go down. How did you decide when arranging your mortgage on the fixed term?

~Beanie~

I went for a 5 year fix for my first one as it was my first house and I wanted to be certain of my outgoings for the first few years.

comeandgo

We are just outof a 5 year fix. What made me decide to fix for 5 years was a good rate and we knew exactly what our payments would be - we were not going to be moving and so fed up with the high fees charged by new companies as previous to that we changed every two years. Are there high fees if you want to get out before the 5 years is up?
Rates go down? From about 3%, I dont think rates can go much further down.

sterl1ng

I guess cause 4yrs feels like such a long time but with rates low it did make me think whether this would be best bet. Especially as nationwide are doing cash back too. I guess also cause rate vs the 2yr higher so monthly mortgage bit more.

Yorkie1

Don't forget that if you take the 2 year fix, you'll be looking at paying remortgage fees or a (probably) higher SVR in only 2 years, and not 4.

hcb42

i fixed for five years in 2006 and felt it was too long as rates dropped...it is a risk only you can evaluate...