3 or 5 year fix in June 2022?

franekbla

I’m looking to remortgage now, like so many. Should I fix for 3 or 5 years? I’m not looking to move anytime soon but obviously conscious that 3 years is cheaper and has early repayment charges, in case something changes. It’s a shared ownership mortgage, which is not massive but every little helps these days. I’m being offered 2.69% for 3 years or 2.79% for 5 years with no fees. 

RelievedSheff

I would personally go for the 5 year fix. 

dimbo61

Are you trying to buy a bigger share ?

franekbla

No. Not at all. Not possible in London. No one will ever go above 25% on this flat. 

2016housebuyer

I would go for the 5 year fix.

Given it's a shared ownership the ERC is going to be much lower in £, in year 3 (of a 5 year fix) the ERC might be 2%.

If the flat is worth say 750k for full ownership that would be £15,000 ERC, whereas for the percentage you own/have the mortgage on that's £3,750.

I have a shared ownership house and have just fixed for 10 years for the security/peace of mind, knowing that it won't cost an absolute fortune if I did need to pay an ERC. I wouldn't have fixed for 10 years on a non-shared ownership as the ERC works out to silly money

AngelOfTheNorthWest

In the current climate, 5 years. I found there wasn't much difference between 3 and 5 year fixes when I looked recently, though perhaps you have seen offers where it's bigger.

london21

With the way things are going, will go for 5 years considering not looking to move in the short term.