5year or 2year

My mortgage is coming up for renewal in a month's time. My current provider has offered a product transfer fixed rate of 3.94% for 5 yrs, which I have booked. But given all indications that the rates will start coming down from end if year, I am torn between 2yr with another provider and 5yr with current . Given I have no product fee to pay fir product transfer plus no hassle with conveyancing, I am leaning towards it. But on the other hand, not sure how fast the rates will drop in the coming years.
Any thoughts on this would help me make my independent decision



  • New_in_the_fens
    You have to make the best decision you can based on your circumstances. Do you think you’ll move? Job stability / instability? Need more money for home improvements? Significant change of income in the next 2 years? Have a need for certainty of payments for a longer term? 

    I’m on a 10 year FR booked as the world went nuts last year but still under 3%. I’m not moving, have a plan to clear the mortgage in full in those 10 years (16 year mortgage). Never had a fix for so long - but as long as it all goes to plan, I’ll not need another one 😂
  • Orangetoes
    Orangetoes Posts: 342 Forumite
    First Anniversary First Post Name Dropper
    We were in a similar position. We went for the 5 year fix. We knew we could afford the payment and liked the stability. Like you it was same provider and no fee. I guess it depends how much you can afford to gamble. What if the rates go up not down? 
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