How long to fix for and for how long?

Paintingrainbows

Coming to the end of our 5 year fix on our nationwide mortgage.  We have £122k left to pay and it’s just under 40% LTV with 14 years.

I’ve been overpaying a wee bit a month.  I’m keen to pay of my mortgage in 10 years.  I was wondering if I should go with a 2 year fix for 1.09% or a 3 or 5 year fix at 1.34%?  What would you do? Thank you!

[Deleted User]

If it were me I would be going for a 5 year fix (assuming you don't plan to move house)
Rates can't get much lower so the extra few points of a % may seem a waste, but it could be a cheap insurance against a future hike in a few years time

mark55man

I have gone with 5 year fixes and probably paid more than I needed to but the certainty was important and the fees reduced the savings from shorter fixes.

1.34 is a great rate and I wouldn;t look past it, unless you could get a 7 for much the same.  That gives you great overpayment options and by the time you get to 7 years you will have so little remaining almost anything would be affordable

getmore4less

What are the fees on those you may be better with no fee rates
they look like the rate switch with £999 fee.

with £122k and a 10y payment schedule

End of a 2 year fix (no fee is better).

1	£122,999.00	1.09%	£1,092.23	£99,219.36
2	£122,000.00	1.44%	£1,092.23	£98,984.01

End of a 5y fix ( fee is better).

1	£122,999.00	1.34%	£1,103.00	£63,109.21
2	£122,000.00	1.64%	£1,103.00	£63,497.89

if rates stayed the same and you got 1.44% for the 5 years and paid the same as the 5y fix

1	£122,000.00	1.44%	£1,103.00	£62,523.98
2	£122,999.00	1.34%	£1,103.00	£63,109.21

if you can't keep the 10y payment or plan a different overpayment strategy you need to crunch the numbers but they will probably show something close