5 yr fixed vs 2 yr fixed - worth cheaper payment for 2yr?

adpad

I'm looking at a mortgage with Virgin.

For a 5 year fixed mortgage the monthly repayment is £1143.
For a 2 year fixed mortgage the monthly repayment is £1070.


Any suggestions as to which deal may be best to take?


In 5ish years we would probably look to sell the flat we are currently buying and buy a house.

David_White

What happens if things change and you want to sell your flat in 3/4 years?

getmore4less

There is far more to it than the monthly payment,

start with a look at how much you owe on both in 2 years time, then look again if you overpaid so the payments were the same.

that will tell you what taking the lower rate for 2 years is worth in real cash .