Fixed 5 year or 2 Help

natalieho

Im really struggling to decide, the 2 year would save me £70.00pm as apposed to the 5 year. But im leaning towards the 5 year due to the speculated interest rates increase.


If you where re-mortgaging WWYD?

creditcarddebt

Hi, I have just this moment signed my new deal for 5 year fixed. I did toy with the idea of fixing for 2 years, but I wanted the security of knowing for definite what I would be paying. We do have a fairly substantial mortgage though and no plans on moving as this will hopefully be our forever home.

Skinto_7

We also recently fixed for 5 years rather than 2, as previous poster we prefered the security and were happy with the rate, also we plan to be in our house for at least the next 10 years so no issues with early re-payments/transferring etc.

d70cw6

May want to consider what your LTV would be after 2 / 5 years. I fixed for 3 years a couple of months ago as when that rate expires i should be into another LTV tier and secure a better rate when remortgaging. Just hoping rates will still be low when that term expires.

Ianh82

i'm with you on this but i opted for a 2yr fixed because of the above reason. i will hopefully hit another LTV band in 2 yrs so may hopefully save some then. it may also not be our forever home but you don't know until you move in.

getmore4less

Crunch the numbers properly, it is not just about the monthly payment you have to look at the fees and the amount owing based on the same outlay

wifeforlife

We're waiting on our mortgage decision, we've opted for a 5 year fixed deal

somethingcorporate

+1 for the 5year fixed, we did this a few months ago.

No idea where and when the rates are moving but paying 3.4% or so for 5 years is a very attractive prospect.

Angry_Bear

I've gone for a 2 year fixed. By keeping the monthly payment the same I will have paid off more capital by the time I come to renew and think it'll work out best for us.

I ran some numbers through a spreadsheet and worked out (including fees and so on) what the interest rate would have to be in 2016 for a 5 year fix to be better for us. I'm taking the gamble that it won't get that high by then.

natalieho

I think I may go with the 5 then, the LTV will still be in the same 'band' after 2 years as we have just hit it 70% now.

Svenena

I've just applied for a 5-year fix at 3.19%. It's only £27pm more than the two year fix (relatively small mortgage as I'm purchasing a shared ownership property). I'm already at 60% LTV, so I don't think rates are likely to get more competitive when I've paid some off in a couple of years.

If I had a lower deposit and thought I could get into a lower LTV bracket when remortgaging, then I would have considered a shorter fix, or if I thought I was likely to move within five years. But otherwise I'd rather pay a little more for longer-term security.