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Mortgage renewal - should I go 2yrs or up to five years fixed?
adidas
Posts: 335 Forumite
Hello
I know the above answer depends on a variety of factors. I don't plan on moving house and my circumstances are unlikely to change. I have been offered the same fixed rate over 2, 3 or 5 years. Does anyone have any resources in terms of inflation / interest rate predictors that might give me some guidance about the term to choose? Obviously if the rates are rising significantly then it'd make more sense to go with a longer term one.
I know the above answer depends on a variety of factors. I don't plan on moving house and my circumstances are unlikely to change. I have been offered the same fixed rate over 2, 3 or 5 years. Does anyone have any resources in terms of inflation / interest rate predictors that might give me some guidance about the term to choose? Obviously if the rates are rising significantly then it'd make more sense to go with a longer term one.
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Comments
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What's the interest rate and are there any product fees.0
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There are no product fees. The rate is 2.24%. Either 2, 3 or 5 year fixed terms.0
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Normally you might see a £1k fee so paying that every 2 years would increase the effective % rate if you paid it twice compared to once for a 5 year deal. Yours is fee free so not relevant unless you remortgage with someone who does. With whats going on in the world the only certainty in life might be a fix on a mortgage that is portable with unlimited overpayments.
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If you are pretty sure you are going to be in the property for 5+ years, it makes sense to go for the 5 year fix.
Unless you are at a high LTV and think you can remortgage onto a lower LTV after 2 years.2 -
Fixed-rate deals give you the certainty of the amount for the fixed period. With interest rates only going in one direction, the longer the better. As long as you are not moving within the period of the fixed term.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.2
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The rates can only go up mob have got it right only 6 month's of the last 15 years.
If YOU think they won't go down from this current high fix for longer.1 -
Ties you to your existing lender though. Majority of people increase their mortgage debt and borrow more when moving.Tranboy said:
Unless the mortgage is portable.dunstonh said:Fixed-rate deals give you the certainty of the amount for the fixed period. With interest rates only going in one direction, the longer the better. As long as you are not moving within the period of the fixed term.2 -
Hello,adidas said:There are no product fees. The rate is 2.24%. Either 2, 3 or 5 year fixed terms.
Who's that with if you don't mind asking?
Thanks0 -
Nationwidekokolino23 said:
Hello,adidas said:There are no product fees. The rate is 2.24%. Either 2, 3 or 5 year fixed terms.
Who's that with if you don't mind asking?
Thanks
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