We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

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

adpad
adpad Posts: 60 Forumite
Tenth Anniversary 10 Posts Combo Breaker
in Mortgages & endowments
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.

Comments

  • David_White
    David_White Posts: 892 Forumite
    Fourth Anniversary 500 Posts Combo Breaker
    What happens if things change and you want to sell your flat in 3/4 years?
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    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 .
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.1K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.1K Work, Benefits & Business
  • 603.8K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture