5 or 10 year fix ?

puresilk

Just after some opinions on here, my 2 year fix is coming to an end in May 2016 and I don't know whether to fix for 5 or 10 years.

My loan to value will be 74% so it gives me quite good deals on the market, I will be remortgaging over 28 years and currently I am looking at:

2.04 fix for 5 years which is roughly £890 a month

or

2.79 fix for 10 years which is £960 a month

Both of the above are comfortably affordable, and I will be looking to make £200 over payments a month on both, but is a 10 year fix just too long to commit to, especially if rates stay low for the next 5 years or so?

Any opinions or advice appreciated.

getmore4less

Why not look at low rate trackers

if you can afford 200pm extra you don't need to fix.

dimbo61

Well 5 years is a long time and things can change.
10 years is a hell of a long time.
If you can afford to overpay each month then this overpayment will build up each month.
Once below 60% you will not find any better deals

AnotherJoe

As said, 10 years is a long time to be stuck with an ERC, especially if you can overpay anyway.

Take the 5, overpay and look at your pension position as well. 10 years of the difference into a pension could take a year off your retirement date 20 years down the line.