2 year Vs 5 year

The_Palmist

Hi Guys,

Planning on staying 5 - 10 years
Age 35, 2 kids, 3rd on way, currently no child care costs as they are of nursery age.
Savings all going towards deposit
Fairly simple lifestyle
Income ~50K per year
Wife currently on career break but likely to be back to work in 2019.

I have had few products to choose from, the fees are same.

Halifax 2yr @ 1.6pc and 5yr @ 2pc
Santander 2yr @1.4 and 5yr @1.99

Looking at the recent news about BOE likely to put rates up which lock in period makes most sense to you.

Appreciate everyone's situation is different and ours has just come down to these 4.

Early repayment survey fees cashback etc. are same between both lenders.

dimbo61

Not giving much away !
Is this a new mortgage ?
Are you planning on staying at least 5 years in the property ?
Your age, income, job, savings, pension , kids and how you spend your income are all very relevant.
The BOE has been about 0.5% for nearly 10 years but will rise in the next 2/3 years so your call.

The_Palmist

dimbo61 wrote: »

Not giving much away !
Is this a new mortgage ?
Are you planning on staying at least 5 years in the property ?
Your age, income, job, savings, pension , kids and how you spend your income are all very relevant.
The BOE has been about 0.5% for nearly 10 years but will rise in the next 2/3 years so your call.

Sorry, edited original post to include the answers.

Zorillo

I'd fix for 5, no question. As everything is the same and the Santander rate is lower, I'd go there.

worried_jim

Just fixed mine for 7 years with Santander as from May when my current two year fix ends. With just ten years left this peace of mind is a real bonus, with some over payments this gives me something to aim for.

Thrugelmir

If you like to be certain of your outgoings then a 5 year fix is preferable.

Alternatively take the chance that rates don't rise as quickly. Use the saving on the 2 year fix to overpay the mortgage. Thereby speeding up repayment of the debt owed. This then reduces the impact of future rate rises.

Any fee free options available? Depending on the debt you owe shouldn't be discounted.

The_Palmist

Thrugelmir wrote: »

If you like to be certain of your outgoings then a 5 year fix is preferable.

Alternatively take the chance that rates don't rise as quickly. Use the saving on the 2 year fix to overpay the mortgage. Thereby speeding up repayment of the debt owed. This then reduces the impact of future rate rises.

Any fee free options available? Depending on the debt you owe shouldn't be discounted.

Thanks Thrugelmir, it is the rate of interest rise which has got me thinking. I was debating [in my mind] that even if rates don't rise as quick, the deals in 2020 are likely to be 2%+

5yr Options

Santander 1.94% £999 fee
Halifax 2% £995 fee
Halifax 2.2% 0 fee

stator

Fix at 2%? How is that even a debate!
They're practically giving it away for free.
I'd fix for as long as possible.

getmore4less

Size of mortgage & LTV?

The_Palmist

getmore4less wrote: »

Size of mortgage & LTV?

185k
74%LTV

Peelerfart

Any restrictions on on overpayments, or is that not an issue for you ATM?