2 Year or 5 Year Fix?

Newbie_John

£147,028 with 19 Years

The 2 years 4.72% with no fee:
Over 2 years you pay: £23472
Remaining balances after 2 years: £136,989

The 5 years 3.93% with £995 fee (£16.58 monthly):
Over 2 years you pay: £21984 + £397.92 fee = £22381.92
Remaining balances after 2 years: £136,189
Over 5 years you pay: £54960 + £995 fee = £55955
Remaining balances after 5 years: £118,249

Now in 2026 if we start with £136,989 for 17 years and get 3.65% rate for 3 years we will be at:
£902 monthly - £32472 total for 3 years
£118542 balance after 3 years (almost the same as after 5 year fix)

£32472 (further 3 year fix) + £23472 (first 2 years fix) = £55944 (almost the same as total 5 year fix).

So 3.65% fixed for 3 years with no fee is your goal   

Yorkie1

I did the maths a few weeks ago on 2 years vs 5 years and also decided that I would need a follow-on rate of no more than 3.65% (ish) to break even with the 5 years.

I wasn't convinced that this would be achievable in 2 years' time - so chose the 5 years. 

jonnydeppiwish!

We have a 5 year at 4% - the ability to know exactly what is leaving the bank account is beneficial for us

hufc2002

Virgin rates have now all increased by 0.1%

Does anyone know if I switch online, will I still have access to view their product transfer options?

SilverSix

hufc2002 said:

I have been doing some man maths for the 2 year (4.72%)  v 5 year (3.93%) fix.  If I look at the next 5 years, the 2 year fix would only be worth it if I can fix again in 2 years time around 3.5%.

Does that sound about right?

Sounds about right.

A 2 year fix 4.26% followed by 3 year fix 3% I've estimated would only save about 1.5% on the overall interest paid. This is vs a 5. year fix at 4%.