2 or 5 yr fixed

Pip_Boy_111

We went with a two year fix. Reasons being that with overpayments, we have dropped below 85% LTV this time and hopefully, below at least 80% if not 75% next time. This should give us access to the very low rates. With a 5 year fix we'd be stuck on what we have (not that it's terrible, around 2.8%). Obviously if rates shoot up this will be negated but I can't see it happening. (Crosses fingers and touches wood)

getmore4less

With a 0.5% rate difference that's 2 rate rises built in.

2 years of paying like you were on the higher rate will build in a bigger buffer and/or cover any fees at Y2 for a switch.

eg £200k mortgage over 25years

at the end of 2 years

£200k 2.04% £852pm £187,469
£200k 1.54% £852pm £185,499

thats nearly 2k to deal with fees and rate rises.

The 3 year follow on rate to break even Y5

2.42% £0 fee
2.22% £1k fee
2.02% £2k fee

FIRSTTIMER

I fixed for two years and now fixing for another two years. My LTV has dropped from 90 to 75 to hopefully around 60/70% in another two years. I would rather benefit from that and some form of flexibility than tie in for 5 years and potentially either want to move, drop rates by having the lowest itv or benefit from rate cuts. I believe rates at my current bank for two year fix hasn't changed in 6 months (HSBC/FD). Ive been keeping an eye on it.

Dandytf

AnotherJoe wrote: »

Lets revisit that in a years time.
Brexit & Eurozone financial problems all point to next most likely move is down.

Agreed
Mr Carney has recently mentioned in a no deal scenario rates could go either way