Fixed term - how long 2 or 5 years?

getmore4less

Don't look at the difference in payment look at how much you owe

Lower rate pays off more debt even with a lower payment.

AnotherJoe

chelseablue wrote: »

Our 2 year fix is ending in March and we're going for 5 years this time as we wanted the security of long low fixed rate (especially with the Brexit uncertain times ahead)

But then we owe a lot more than you (£219,000)

Current rate is 1.49% and we're getting 1.79% for 5 years

If Brexit implies anything, its lower interest rates.

katie4

Thanks for all your replies


I have some figures if anyone could help to decide best option that'd be great please


borrowing £57,000


15 years
5 year fixed £368pm (interest £9,307) 2.06% total cost £66,307
2 year fixed £353pm (interest £6,642) 1.49% total cost £63,642 (I FEEL THIS IS THE BEST OPTION? FEE DEPENDANT)


20 years
5 year fixed £289 (interest £12,594) 2.06% total cost £69,594
2 year fixed £274 (interest £8,949) 1.49% total cost £65,949


we are currently paying £360pm

dimbo61

You are comparing apples and pears !
Look at the long term view ? Are you staying in the property long term ( over 5 years )
Could you afford to pay 4/5/6% interest on your mortgage.
You are paying £360 a month so you could take the 2 year deal and overpay every month by £86 a month