Daft remortgaging question

Liam21

It's the first time I've ever had to remortgage so please bear with me....

My 2 yr fixed rate mortgage on my flat is coming to an end - my bank has given me two offers; another 2 yr fixed rate which will cost about £25 less per month; or a 5yr fixed rate which will cost about £50 more per month.

I know mortgage rates are expected to rise so there is a certain logic in fixing for longer; but its only complicated by the fact that within the next 2 years my partner and I are likely to buy somewhere bigger together (selling the current flat). I have checked with the bank and the mortgage is 'portable' to the new property.

So as I see it my options are...

1. Go for the 2 year deal: benefits are slightly more money in my pocket each month and flexibility of shopping round for a new deal when we do buy together; downside is rates are likely to be higher by then

2. Go for the 5 year deal: benefits are keeping the current rate on a chunk of our mortgage on a new place (which i'm presuming will be cheaper than anything available then); downside is slightly more expenditure each month and tied into the same lender.

Any thoughts?:beer:

getmore4less

you need to give some numbers the £pm is useless for comparing

Key things will be things like the level of borrowing, LTVs and the rates on offer now and possibly in 2 years.


if really worried about rate rises why not move now and secure those low rates on all the money rather than just a bit of it?