Remortgage Rate - Is this the time to fix long term?

IAMIAM

Switching rate with the same lender. No plans to move or sell but may rent out in the future if needs be/emergency.
75% LTV £150k
1.45% 2 Year Fix £500 Fee
1.59% 5 Year Fix £500 Fee
Is this the right time to pluck for the 5 year fix, I normally just continue with the cheapest two year fix taking into account the fee/fee saver.

Sistergold

IAMIAM said:

Switching rate with the same lender. No plans to move or sell but may rent out in the future if needs be/emergency.
75% LTV £150k
1.45% 2 Year Fix £500 Fee
1.59% 5 Year Fix £500 Fee
Is this the right time to pluck for the 5 year fix, I normally just continue with the cheapest two year fix taking into account the fee/fee saver.

That 1.59% for for 5yrs is really tempting. I would not feel bad even if interests rates dropped while I am on that. Seeing you will pay same £500 for both products. 

Wonder what others think but I wish I could fix at that with all this going on I think 5years will give you good peace of mind! If house prices should drop not saying they will LTV drops but I think 5yrs gives time to average things out?

Thrugelmir

Will you pay the fee upfront or will it be added to the mortgage balance. 

IAMIAM

Thanks for this, yes I will pay upfront. I suppose in the space of 5 years, I would end up paying two two year fix fees, potentially as opposed to one for the 5 year. 

mdori003

It's a personal thing but for all the difference I would go for the 5 year fix

RelievedSheff

Assuming you have no plans to move then I would certainly be looking to take the 5 years fixed rate.

dimbo61

You will hopefully be at 60% LTV if you take the 5 year deal and have paid off a good chunk of your debt.
If you are considering renting out the property down the line have a look online about the policy your lender has about this or search on Google

blue_max_3

How secure is your employment? They usually come with harsh fees for early redemption if you have to sell.

zagubov

That's a very tempting rate for a five-year fix. I'm on a good one myself but not as good as yours. They may follow the current stampede of withdrawing good offers so don't put the decision off forever.

md258

What do you mean by "may rent out in the future"? I'm assuming you mean that you have no plans to become a landlord but could be forced into it by negative equity, unexpected job move etc.
If the above is true, I would say go for the 5 year one. The interest rate isn't enough higher to justify another set of fees in 2 years and the risk that rates will be higher.
On the other hand, if the plan is to become a landlord or you can realistically see yourself moving area/house in the next 5 years, the 2 year one will reduce the amount of time that you may have to pay the mortgage on an empty property if you don't get consent to let.

IAMIAM

Thanks for this. My concern is if I obtain CTL after a year and its for a maximum of two years only and the lender then says they will not extend the CTL and I have to move to BTL or return to live there. Anyone been in this situation? What would happen at the start of year 3? It is just a temporary move for work potentially, but if it becomes longer than 2 years, what happens?