Fix for 2 years or 5 years

h1n1

Hello, 
Looking to buy a home for 325,000 with 230K deposit; first-time buyer. 
Mortgage advisor says a 2 year fixed is higher interest than a 5-year - which is usually the other way around, but suggests lenders are confident that rates will be lower than the rate offered. 
however, this is just a 'prediction'. 

I am not sure at all ..., wether to go for a 2-year fixed with a higher rate (4.56 %) or the 5 years of 4.16

naf123

Assuming this is a 95k mortgage for 25 years, the difference is only £21 a month e.g  £531 (4.56%)  vs £510 (4.16%)  a month.....

If only most of us have such problems......

RelievedSheff

Literally nobody knows what interest rates will be in two years time. So you need to base your decision on how much you favour the stability of knowing what your rate will be for the next five years over the possibility that rates may be lower in two years time. 

And note that is a may be lower, they could just as easily be higher. 

[Deleted User]

I went for 2 years fix in February but if you want certainty maybe 5 years.