Is a 2 year mortgage the only way to avoid the high ERC of a 5 year in case you need to move

Ybe

5 year fixes have high ERCs I’ve noticed. And I see porting isn’t always guaranteed and even if it allowed may still incur an ERC. And consent to let is similar. Not guaranteed and even if allowed, can be subject to fees. So is a 2 year the only way to guarantee the flexibility in case you need it? 

ACG

There are variable rates, shorter term fixes. Some have lower ERCs, some have none. There will be pros and cons for both. 

Exodi

Who are you with? Nationwide, for example, charge 1% ERC for every remaining year on the fix.

E.g. if you took out a 5 year fix, then wanted to repay 1 year later (so while the fix has 4 years left), you'd pay 4% in ERC. 2 Year fixes still come with the same ERC structure, but obviously with less time to run the ERC's start off lower (but to be clear, making early repayment in the last year of any fix, 2/3/5/10, would incur 1% ERC with Nationwide).

The way to avoid ERC in that scenario would be to take out a tracker product (which doesn't have ERC's), but may come at a higher rate.

Would you really need to move *instantly*?

Ybe

Exodi said:

Who are you with? Nationwide, for example, charge 1% ERC for every remaining year on the fix.

E.g. if you took out a 5 year fix, then wanted to repay 1 year later (so while the fix has 4 years left), you'd pay 4% in ERC. 2 Year fixes still come with the same ERC structure, but obviously with less time to run the ERC's start off lower (but to be clear, making early repayment in the last year of any fix, 2/3/5/10, would incur 1% ERC with Nationwide).

The way to avoid ERC in that scenario would be to take out a tracker product (which doesn't have ERC's), but may come at a higher rate.

Would you really need to move *instantly*?

Probably not instantly no but for me as the lesser of 2 evils, I’d rather my monthly payments go up at the end of year 2 than face a large ERC in one go for the flexibility in case I do need to move or sell for whatever reason. 

housebuyer143

We only ever fix for 2 years because once we wanted to move and felt trapped by the ERCs because we didn't want to pay them. 
Now I have flexibility of a shorter fix even if I have to pay a little more for it

Ybe

housebuyer143 said:

We only ever fix for 2 years because once we wanted to move and felt trapped by the ERCs because we didn't want to pay them. 
Now I have flexibility of a shorter fix even if I have to pay a little more for it

The ERC is large on a 5 year. Often so large that it would be more than any potential increase in rates even if rates doubled.