2 Yr, 5 Yr or 10 Yr fixed.

tim_london

5 Years

I got HTB.  5 year is about right when I'm either paying back HTB or I move onto lower LTV products.  

BrOz

I've looked at historical rates and they have been pretty low for a good few years. Its hard to say what will happen... 

It's Interesting to see what other people do about fixing.

I am buying a house with land just outside the city and hope for it to be a forever home. 

I hadn't thought about the point of how circumstances can change in the future, as I am thinking of starting a family and didn't even consider maternity leave pay!  Thanks for that point! Definitely something to consider when looking what length to choose. 

RelievedSheff

MovingForwards said:

RelievedSheff said:

MovingForwards said:

I went for a 5 year fix, with a sub-prime lender.

I'm now saving for the ERCs as I'm hoping to remortgage in 2 years, but have the safety net of my current mortgage if I'm not able to move to a new lender.

I would take another 5 year fix when remortgaging due to wanting the security of fixed payments, budgeting and my overall plan for clearing the mortgage within 10 years of it starting. There's no risk of me moving within the next decade.

Our mortgage that will come to an end early next year is with Kensington. We only fixed that rate for two years as we knew that by the time the two years were over we should be able to move to a high street lender as my credit file will be greatly improved by that time. The rate we got was so high (5.19%) that we didn't even consider fixing the rate for any longer than two years even though we have no plans to move from this house for a long time, if at all.

Mine is 5.57%, my credit history will be 100% clear in 2024 and I picked a great flat with its own garden, fantastic views and did well with the budget I set.

It may / may not be my forever home as I would like to move further up and into the Highlands, have a house with about 3 acres for self-sufficiency.

For now I will keep saving, paying into my DB pension and other pension, making OPs and seeing where things are when the mortgage is paid off 13 years early.

Assuming rates don't change too much between now and next March we will be looking at around the 2-2.3% mark when we remortgage which will allow us to drastically reduce the mortgage term while not greatly increasing our mortgage payment. The aim is to drop from the current 25 year term, well 23 years will be remaining, down to a 14 year term with the remortgage. We are hoping then that the time will fly by until we are hopefully mortgage free 

getmore4less

BrOz said:

I've looked at historical rates and they have been pretty low for a good few years. Its hard to say what will happen... 

It's Interesting to see what other people do about fixing.

I am buying a house with land just outside the city and hope for it to be a forever home. 

I hadn't thought about the point of how circumstances can change in the future, as I am thinking of starting a family and didn't even consider maternity leave pay!  Thanks for that point! Definitely something to consider when looking what length to choose. 

Pick a lender with a history of decent retention deals and one that does not penalise you as your mortgage gets smaller.
Even if it means a slightly higher rate now it can pay off in the long run. 

MaryNB

I applied for a mortgage 2 weeks ago. I went for a 5 year fixed. My thought process is that if I'm not planning to be there for 5 years there's not much point in buying somewhere. 10 years is too long a commitment though. I checked a few lenders and they were all offering (based on my requirements) 2 or 5-year fixed. I didn't see anywhere offering a 10-year deal. I did a quick search and I think 10-year fixed terms are generally only available for lower LTVs. 

Grabs39

5 years.  We don’t intend to ever move, and wanted the stability.  We’re 28 so if we were to have children in a couple of years it would help to budget and know we wouldn’t have to factor childcare/reduced income into a remortgage application.  It also means that our LTV should be a lot better when the deal ends giving us more options.

On the downside we pay a little more than we would have for a two year.  But it’s worth it for the peace of mind.

cii4ps

10 year fixed because:
- I don’t expect lenders to reduce their interest further, even if BoE announces negative rates.

- I don’t plan on selling
- It was only £200 difference with 5yr fixed and about the same with 2yr fixed and that doesn’t bother me
- If at the end of the 2yrs or 5yrs it reaches 7%, my monthly payment would be £4,524. Something I’d rather avoid.

Imagine a game of blackjack, you’ve been dealt 20 and house asks if you want another card. That’s the situation we’re in with the interest and expecting even lower interest.

Jimeji

5 year fixed

lemliss

We went for 5 year fixed as its in the middle and gives us some security.

bamgbost

We just recently remortgages 2 weeks ago. we went for 3 years fixed.

By then we hope to have dropped to 75% LTV and in the meantime hope the rates dont increase over coming years.