2 or 5-year fixed deal on remortgage?

CSI_Yorkshire

At8 said:

RelievedSheff said:

At8 said:

I keep thinking what the best decision might be. On the one hand I am worried if rates are higher after 2 years, in which case the 5-year fix will keep us more secure for longer. I am put off by the 5-year ERC though in case we want to move to a new home by then. The 2-year fix definitely offers more flexibility and the ERC cost is less terrifying.

My offers are

4.08% - 5 years fixed
4.49% - 2 years fixed

They both have a £999 product fee. 

Is the product able to be ported if you decide to move house?

It can be ported, yes, but the idea of porting stresses me out having read a bit about it. Do most people normally port when they want to buy a new house or do they plan in advance to have a variable rate in place?

I've ported every time, it's not as daunting as it sounds.

I just made sure that if everything went wrong and I needed to pay the ERC (or rather the ERC wasn't refunded if I'd paid it) then I could afford it.

adamL

At8 said:

adamL said:

At8 said:

I keep thinking what the best decision might be. On the one hand I am worried if rates are higher after 2 years, in which case the 5-year fix will keep us more secure for longer. I am put off by the 5-year ERC though in case we want to move to a new home by then. The 2-year fix definitely offers more flexibility and the ERC cost is less terrifying.

My offers are

4.08% - 5 years fixed
4.49% - 2 years fixed

They both have a £999 product fee. 

I've just accepted a 3.93% 5 year fix. Not sure what the 2 year offer was. It won't switch until 1st November so can re evaluate closer to the time, but a rate under 4% feels acceptable - could be higher or lower in 2 years time but I have my doubts it'll be significant either way.

That's a good rate adam. Can I please ask what your ERC is?

Starts at 5%. Drops by 1% each year. Max ERC is £21k (big ish loan, but with good LTV (60%) as I've been hammering the mortgage down since buying the place 4 years ago with a 20% deposit). It's with Halifax through a broker.