2 years fixed vs 5 year fixed

John24ssj

Hi guys, got a bit of a dilemma here and not sure what to do.

So I am re-mortgaging the house and my advisor has found 2 offers.
1.7% - 2 year fixed with fees : £345
2.79% - 5 year fixed no fees

Follow on rates: 2 years - 3.8% 5 years - 4%

Additional data if it helps:
House £109,000
Left on the mortgage £72,600 for 15 years.

He advised 5 year option as the market is predicted to go unstable and I do not plan to move. Most likely will be there for another 10 years.

Any ideas or suggestions?
Thank you

boliston

What are the fees?

John24ssj

Just realised I don't know I'll to ask and find out. Feel right stupid now

dimbo61

Are you planning on moving within the next 5 years ?
Will you want to buy a bigger property and therefore Port the 5 year fix to the new property ?

getmore4less

what are the follow on rates.

John24ssj

OK I have updated the first post. And am wondering what to go for

dimbo61

If you like the security of the longer fix and can afford to overpay on top you could be nearly mortgage free in 5 years.

John24ssj

Seems like they only allow 10% overpay

dimbo61

So you can overpay £7260 in first year, what £6000 in second, £5300 in third, £4800 in forth and have less than £40,000 in 5 years.

John24ssj

dimbo61 wrote: »

So you can overpay £7260 in first year, what £6000 in second, £5300 in third, £4800 in forth and have less than £40,000 in 5 years.

That sure sounds good to me! Previously I couldn't afford overpayments but now I can and I am going to.