2 or 5 year fixed- what to reccommend?

compound

Hi,

I am currently training as a mortgage adviser and am having trouble recommending between a 2 year fixed or 5 year fixed. As in the correct questioning that would help with making this decision.

Could an Adviser give me some examples of questions which will help make it easier to make an imformed reccommendation?


Many Thanks

ACG

- How long do you intend to live in the property (It means you are reliant on that lender allowing you to port otherwise there are ERCs).
- Are you expecting any lump sum payments (It may mean they want to overpay to bring the LTV down).
- (Assuming they want a fixed) Are you looking for the cheapest fixed (which would usually be a 2 year deal) or something that gives longer term stability of payments (3, 5, 10 year fixed).

RickyC_IFSWP

I agree with ACG - some very good questions there.

Also, you should ask the clients what their views are on future interest rates (in the next 5 years).

amnblog

Is a fixed monthly payment important to you (yes).

Are you comfortable to have your payment rate fixed initially for the first two years of your mortgage, or would you prefer to pay slightly more to fix your monthly payment a longer period?

Mortgage_Mark_2

How confident are you that, should your mortgage rate increase to 7% in two years' time, that you could afford your mortgage?

(Clydesdale Bank stress test at 7% for <5yr fixed rates)