2 or 5 year deal

london21

Interest rate going up next month but will start coming down towards December onwards.

Inflation still high.

Last year would have said 5 years but now leaning towards 2 years but if you like certainty maybe 5 years. 

IAMIAM

Mortgage rates will not be at 4% in December! They will be around 4.5%

The BOE is going to be around 4.75% in December, if not 5%, mortgage rates wlll be around 4.5 to 5.5

IAMIAM

May 4.5%
July/Aug 4.75%
Maybe another rate rise to 5% and then drops early next year

Windlepoons

I ended up going with the 5 year.

Still have time to change it, but with my luck what ever I choose would end up being the wrong decision lol.

RelievedSheff

Windlepoons said:

I ended up going with the 5 year.

Still have time to change it, but with my luck what ever I choose would end up being the wrong decision lol.

We usually opt for a five year fix.

Two years are just not long enough to give any kind of certainty. Blink and they are over.

FashionHeart

Windlepoons said:

My LTV is 36%

I made the mistake of going 2 year fixed when the rates were 1.03% because I saved a few extra £ a month, if I had done the 5 year deal I would only be paying 2% for the next 3 years.

Just not sure what to do now I've been stung by the increase lol

My sister and I made the exact same mistake when I bought my share of the house as part of a Transfer of Equity from her husband.
But we're in a slightly more complicated situation than many others on here as it is to meet our mother's needs who require a place to live as she's now in her 70s.
So right now we're really not sure whether to fix it for 2 or 5 years as I am planning to move anyway in the inevitable event that she passes away because at the moment she is extremely happy staying in the current property and is not willing to move.