Mortgage offers - 2yr fixed @ 1.95% or 5yr fixed 2.59%?

lookstraightahead

RelievedSheff said:

We took out a 5 year fix last year at 2.3%. 

We went with the longer fix for some certainty over the next few years.

Same as us.

lookstraightahead

sevenhills said:

lookstraightahead said:

I took out 5 years a year ago and I'm just glad for the certainty even though I've got a small mortgage now. But then I've known interest rates hit 15%.

I took out a 10 year fix 5 years ago, very difficult to be in front ££ wise, but I have the certainty that I won't face 5%+ rates.

Good plan. The problem is people don't work out what that means as the numbers look low. It has a massive impact on your mortgage repayments. 

propertyhunter

Fix at 5 years. If you find someone, think about that at the time - plan for what you know today. You will have options should you no longer want to live there (e.g. renting it out might be an option, with the lender's permission - and depending on the size of the ERC could make more financial sense than paying the ERC). It's not easy being a landlord though, but all I'm saying is you have options for when you need them that don't necessarily mean paying an ERC. 

Ramouth

5 year fix for me too.  I was unsure of committing to a house I hadn’t lived in (what if the neighbours turn out to be a nightmare?) but most can be ported if you need to move before the 5 years are up.