Mortgage fixed rate period and job

hunte78

Hello. I have worked for the same employer since 2013, moving up the ladder to different roles. My current fixed contract has 3 years remaining, however I expect this to be made permanent before it expires (obviously no guarantees as yet). My wife has recently returned to employment so our household income has increased and we feel ready to buy as FTB.

We have just started looking at mortgages and have an AIP through L&C. Is a fixed 2 year the best we can hope for currently due to my contract or will some banks allow us to take out a 5 year fixed rate?

Thrugelmir

Mortgages run for the contractual term that you borrow the money, i.e. 15, 20, 25, 30 years etc. With a 2 year fixed product the interest rate remains the same for the duration of the term. At the end of which, you would default back onto the lenders standard variable rate (SVR). You could then select another product ffrom the lenders range. With a 5 year fix the same principle applies, though obviously interest rate remains the same for 5 years.

hunte78

Thanks for taking the time to reply Thrugelmir. I suppose what I am trying to ask is whether a company will only offer 2 year fixed rate because I have just over 2 years left on an employment contract. L&C originally suggested 2 year fixed and I thought the work situation might be a reason why.