Best Mortgage Strategy

IanSC

My two-year fixed mortgage is coming to an end at the end of May so I'm now in the period of deciding what I need to do next.

As the BoE interest rate has dropped to an unprecedented low, in my ignorance I just presumed the best tactic would be to sign up now for the longest term, fixed-rate mortgage at the best rate I can find, or am I way off?  Surely they can only increase in the future (Especially if the increase rate increases to try and claw back from the current period)?

Apart from the obvious deadline of my fixed mortgage ending, is there any other factors that I should consider (Like new tax year?)

Any advice would be extremely, extremely appreciated.

Thrugelmir

BOE base rate does not directly impact term fixed rates. Some lenders have recently increased fixed term rates marginally. That'll be a commercial decision based on a range of factors. Long term fixes provide peace of mind. You'll be able to budget as well. Tax year makes no difference to mortgage lenders. More importantly in the short term will the depth of the recession and the the resulting mortgage defaults. 

IanSC

Thrugelmir said:

BOE base rate does not directly impact term fixed rates. Some lenders have recently increased fixed term rates marginally. That'll be a commercial decision based on a range of factors. Long term fixes provide peace of mind. You'll be able to budget as well. Tax year makes no difference to mortgage lenders. More importantly in the short term will the depth of the recession and the the resulting mortgage defaults. 

Brilliant, thanks so much.  So irrespective to the BOE rates the gamble/risk remains the same as normal.  Long fixed-term mortgages offer security over a longer period but have higher rates than short term ones.  I just have to make a decision based on what I can afford now and whether I think in 2/5 years time I would get another favourable short term rate or they would increase (especially taking Brexit into consideration)

Thrugelmir

When considering shorter term fixes factor in product fees. As the mortgage balance reduces the fees will have an impact on the true cost of the borrowing.