2 Yr, 5 Yr or 10 Yr fixed.

BrOz

Thanks for the comments everyone. I'll either be choosing 5 year or 10 years as I like the security. 

James0707

RelievedSheff said:

We are due to remortgage shortly and will be going for a 5 year fixed rate. 5 years gives you the security of knowing long term what your interest rate will be without being stuck with that mortgage for too long. A lot can change in 10 years and the property may not be suitable for you for all that length of time.

Interest rates won't be rising any time soon.

Correct we fixed for 10 years in 2016 but actually sold ours last week it’s to small now for us  if we to move mortgage with other bank 10k ERC. 

HCIMbtw

getmore4less said:

. Never fixed, took advantage of the great tracker rates available years back.
Base+0.95%
There were better we could have moved to but small savings on <£100k with borrowed offset funds at 0% on CC

Don't get fooled into thinking longer fixes are for the risk adverse.

Knowing you payment for years is oversold as a benefit. 

The risks are just different the main one being tied into higher payments. 

not the most useful information for people without a time machine.. 
did you not have to fix the tracker rate for a period of time or was it life of mortgage? 
first direct appear to the only ones kicking around with longer term trackers at the moment from what I can see.. fix at base rate +1.99%... I mean if rates go seriously negative it might be alright, but when I can fix for significantly less.. not so appealing 

tigsly

HCIMbtw said:

first direct appear to the only ones kicking around with longer term trackers at the moment from what I can see.. fix at base rate +1.99%... I mean if rates go seriously negative it might be alright, but when I can fix for significantly less.. not so appealing 

Make sure you read the fine print of a 'tracker rate' .. mine  says that it will never go 'negative' 

getmore4less

HCIMbtw said:

getmore4less said:

. Never fixed, took advantage of the great tracker rates available years back.
Base+0.95%
There were better we could have moved to but small savings on <£100k with borrowed offset funds at 0% on CC

Don't get fooled into thinking longer fixes are for the risk adverse.

Knowing you payment for years is oversold as a benefit. 

The risks are just different the main one being tied into higher payments. 

not the most useful information for people without a time machine.. 
did you not have to fix the tracker rate for a period of time or was it life of mortgage? 
first direct appear to the only ones kicking around with longer term trackers at the moment from what I can see.. fix at base rate +1.99%... I mean if rates go seriously negative it might be alright, but when I can fix for significantly less.. not so appealing 

was just answering the question asked.
I'm just wondering how long you fixed your mortgage deal for and why?

The mortgage market changes all the time and was a lot more volatile before the base drop to 0.5%
There was a time where lifetime trackers*(with or without offset) were the best option but they limit the intermediaries to mainly new purchases house moves  and  and extra borrowing so they pushed the fixed rates more to get repeat business.

Now the lifetime trackers tend to be more expensive than those with time limiting terms and the fixed rates which now dominate the market, some of the short term trackers have a places as they can have better over payment terms and no ERC

For now it is a number crunch on the 2,3,5,7,10... year fix options to see what the rate change need to be to be worse off and do the assessment on which is likely to be the cheapest  when the differential between 2 and 5 is big enough the repeating 2 years can be a lower risk/cost option that the 5 year.

At the longer terms the risk of hitting an ERC payment goes up so that could make deals like the Coventry option of a 10y fix ERC free after 5 a better option that a slightly cheaper rate with ERC for longer, but still needs comparing over say a 5+5.


* The trackers tended vary a bit and a lot of lenders had base tracker follow on rates which were often competitive against the fixes at the time.

It took a few years for fixes to drop enough for even those on Nationwide BMR(base+2%)to need to look at switching
Also early on when base rates were 0.5% savings rates were a lot higher  


there were  base-x% lifetime trackers around for a while  base+0.19% was a popular first direct/woolwich option.

Because some did go negative most deals got Floors put on them some retrospectively.
here is Nationwide list of track floor rates.
https://www.nationwide.co.uk/support/overlays/overlaypage-base-rate-tracker

some of the threads from around the rate drop make interesting historic reading to see how entrenched some were on  having a fixed rate.

https://forums.moneysavingexpert.com/discussion/2267411/end-of-a-l-fixed-rate-mortgage-base-rate-tracker
 

The "fix rates can only go up" mob have been around forever  but there have been very few periods where it has actually saved people money against other product offerings at the time.

anna42hmr

I initially went for a 2 year fix, but that went by so quick. Chose it at the time for two reasons, one that it was a lower interest rate and 2. was aiming with OP's to manage to drop down to the next LTV bracket during that time so that could fix at the next bracket down after that.  

That is what i managed to do, and by  dropping the LTV to the next bracket the at the end of the first two years meant that i ended up fixing for 5 years cheaper than the original 2 years interest rate.  I now have around 18 months left of the 5 year fix and will probably fix again for another 5 years at that point.