Which fixed rate term to choose?

jjsmum

Hi
I have a choice of either a 5 year fixed rate at 3.05% or a 10year fixed at 3.89% I don't know which to go for. I would like stability as I'm a single mum so 5 years is good but i'm also tempted by the 10 year fix but that seems such a long time. I can take the mortgage with me if I purchase anything larger and can reduce it by 25% if I downsize.
Any thoughts?

amnblog

Are your circumstances not going to change in 5 years or 10 years?

Are you not going to meet a new partner, or take a new job. Are your kids not going to need to be in the catchment for new schools.

Long term fixed rates are fine if you are expecting no major changes in your life.

lentrix92

i just switched to HSBC 5yr @ 2.94 - give them a try ,if your LTV matches , i had no probs with them so far !!

hanfrangipane

Can I just ask what the issues to consider are when deciding on the fix term generally?

I'm deciding between a 2 and 5 year fix and, as far as I can see, there is no issue with taking the 5 year deal even though my circumstances may change, as long as I'm happy with and aware of the fees for early repayment or have taken out a product that allows me to move it to a new property.

Am I missing something?

I understand getting a shorter fix if you KNOW your circumsances may change, but otherwise if we all lived on ifs and buts then we'd never get anywhere. I'm currently 'single' legally but have a boyfriend. He may move in, we may break up, I may become pregnant, we may get married....all in the 5 year fix period. But I'd prefer the certainty for 5 years, knowing that at my current salary I could afford the repayments on my own.

darkcamel

I took the 10 year at 3.89% pre-MMR on a product switch, as self employed and have a large mortgage and therefore remortgaging can be difficult, and dependant upon employment. In hindsight, we may have gone for the 5 year.

If we had to sell if we fell on hard times, we would have to pay high early repayment charges of 7% I think for the first 7 years plus if you port the mortgage, no guarantee they will let you as it depends on your circumstances at the time. we only moved a year back and no plans to move for a long time.