Advice on mortgage renewal please!

scottishbrummy

Hoping for some advice as I'm not the most knowledgeable financially...
Currently with Santander, about 72k with roughly 21 years to go. Current deal not up until March, but been sent a letter saying can pay less per month - brilliant?!
So which of the following do I go with...

2 years 1.69% £336 per month
3 years 1.99% £346 per month
5 years 1.99% £346 per month
7 years 2.59% £367 per month
10 years 2.59% £367 per month

It should be noted that I currently pay £362.77 AT 2.49%
I kind of want to go with the 10 years as the future seems more and more unstable... I'm just thinking 2 years from, which will be imminently post-brexit the markets might get scared when I'm looking to fix again?

Looking forward to the advice!!

ThePants999

Fixed rate deals come with early repayment charges. If you take a 10-year fix, then if at any time in the next 10 years you want to sell up or move, you'll have to pay thousands to get out of your mortgage early. If you're buying elsewhere, you MIGHT be able to port your mortgage, but Santander might not be competitive, or they might not be willing to lend on the house you're buying, or they might not be willing to let you increase your borrowing if you need to, etc - a bit of a gamble.

If somehow you know for sure that you're going to be in your current home for 10+ years, sure, go for a long fix if you want. Only you know what value you place on future predictability!

March isn't far away, so just because Santander are offering you retention products early doesn't mean you should sign on the dotted line without comparing to the rest of the market. I've definitely seen better rates than those around, but remortgaging can be a pain, so if the difference is tiny you might decide to stick just to make your life easier.