2 or 5 year fixed

ragdollyana

Hi my mortgage is up at the July so I have an offer from my current lender for 2year fixed 4.75% or 5 year fixed 4.15%. I'm not sure which one to take, any advice welcome?
Thanks

Edi81

Depends on so many factors and your personal circumstances and future plans. 

Personally I’d prefer the security of a 5 year fix. 

MFWannabe

Depends how much you owe, how many years you have left on mortgage?
is the mortgage portable if you decide to move? 

I’d go with the 5 year as I think rates won’t go below 4% again for a long time but that’s just my opinion 

RelievedSheff

I would go with the 5 year fix. 

Two years is just too short atimescale for us.

ragdollyana

Hi, I have £150k left on the mortgage. The mortgage is portable. 23 years left. This is my first house and mortgage so I'm not very experienced but it feels like rates might not drop below 4 % for some time. 

DireEmblem

I'm in a similar situation - the exit fees(should I decide to move) are cheaper with a shorter mortgage, so I'm veering towards that idea (November 23 renewal).

Nailer99

Both are good offers. The advantage of the 5 year is that it is cheaper now. The advantage of the 2 year might be that in two years mortgages are cheaper still. This is what the banks think will happen but jt isn’t certain. If you can afford to risk higher payments go with  the 2 year unless having cheaper payments *now* is more important to you than having cheap payments in two years time. 

MFWannabe

ragdollyana said:

Hi, I have £150k left on the mortgage. The mortgage is portable. 23 years left. This is my first house and mortgage so I'm not very experienced but it feels like rates might not drop below 4 % for some time. 

Personally if I was you I’d go with the 5 year 
then you have the peace of mind of 5 years fixed amount each month 
I don’t think we’ll get below 4% again for a long time but that’s my opinion! 

Zerforax

The banks obviously think the rates will come down eventually which is why the 5 year fixed is lower than the 2 year fixed.

Have you looked at trackers to see what they are relatively?

How stretched are you on paying the mortgage or are you covering easily and making overpayments?