Short or long fix. Mortgage rste

Jack_Johnson_the_acorn

What do you reckon, looking to clear our mortgage in 10 years.
We're considering our options....... All portable deals.

10 year fix 2.5% no fees.
2 year fix 1.5% no fees.
5 year fix 1.9% no fees.

Mortgage remaining is around £92k.
I would never usually consider a long fix but the reassurance that it can never go up until it's paid off is nice.

kinger101

They're never 100% portable. You might not meet their lending criteria at some point in the future, or on a particular property. Or moving a long distance, you might want to rent for 6-12 months before committing to buying.

It's really a question on the probability you'll move, versus the redemption fees.

vivatifosi

We have a fixed which we have in turn been working to pay off early. We found that we could only overpay by so much before you start hitting penalties, so you then have to stash the money in an isa. All very well if you don't want to use the isa for something else but can be a pita otherwise. So I wouldn't personally go for a ten year fix for that reason. It just isn't flexible enough to do so. By way of comparison, ours was an eighteen year mortgage when we moved here, which will have been paid off in twelve. So having the ability to pay off big chunks of money when switching between fixed terms has been important for us.

But as to whether a ten year fix is a good deal otherwise, I just don't know. With hindsight we would have been better off on a tracker as the rate would have been lower. My friend bought their house the same time as us and got base rate plus 0.5%, we've always paid at least 1% over that, but that's something you just don't know.

andrewf75

I had a very similar dilemma to you a few months ago
aim to pay off in 10 years, about 120k remaining
I went for the middle option - 5yrs