Take a 2 or 5 year fix? Thoughts?

Tom_Hendo

Hi 

Rolling off a 2 year deal at 1.5% and looking at a 4.7% 2 year or 4.3% 5 year (might be better this week as I know some have moved)

Just trying to see people's opinions on which they would take and why? I've looked at swap rates and bare rate forecast and seemingly with the peak in 6 months and reduction over 18 months, the 2 year option although worse in the initial period would average out better. But I have to say I'm very new to swap rates and future planning.

Thanka

dimbo61

Are you going to change mortgage providers every 2 years.
30 year mortgage ? 
Moving in the next 2/3/5 years ?
Do you want or need long term security

Tom_Hendo

dimbo61 said:

Are you going to change mortgage providers every 2 years.
30 year mortgage ? 
Moving in the next 2/3/5 years ?
Do you want or need long term security

Mortgage provided by broker, to aim to be the best rate it can every time a fix ends.
25 year mortgage
not planning on moving in next 5 years
No specific need for security, just want to plan to get the lowest interst possible over the medium term 

Edi81

I’d be going with a five year over 2 year. 

The days of sub 2% rates are gone.  

FashionHeart

Tom_Hendo said:

Hi 

Rolling off a 2 year deal at 1.5% and looking at a 4.7% 2 year or 4.3% 5 year (might be better this week as I know some have moved)

Just trying to see people's opinions on which they would take and why? I've looked at swap rates and bare rate forecast and seemingly with the peak in 6 months and reduction over 18 months, the 2 year option although worse in the initial period would average out better. But I have to say I'm very new to swap rates and future planning.

Thanka

I'd go for 5 years fixed if you're not thinking of moving within that time.
2 years go fast (it has for me) and it just gives you that extra security of not paying more for your mortgage.

anna42hmr

I'd go for the 5 year if you have no plans to move, when i took my mortgage out initially i took a 2 year bit that flew by, so have taken 5 years since that point,  gives more security of knowing how much i will be paying for a longer timeframe, and my last deal was not a huge amount of difference in interest rate.