Mortgage rate ending in Jan 2026

Stargirl1234

Hello all,

Looking for some advice please!

My 5 year fixed mortgage is ending soon the rate we secured back then was 1.9 and I understand we will be paying quite a bit more now.

We are wondering if we should go for a fixed 5 year or fixed 2 year? Our mortgage payments are £1495 per month. Our home is now worth around 600k we bought for £545000.

We also have a help to buy at 20% but we do plan to pay off half of it next year.

Any advice is much appreciated. 

Yorkie1

There isn't a right or wrong answer to this. 

If you want the certainty of knowing repayments, at the possible risk of paying more if interest rates are lower in 2 years' time, then go for a longer fix.

Interest rates appear to be on the way down at the moment, but are unpredictable with all the global complexities of the markets.

penners324

You need to get cracking if it's a remortgage. Conveyancing can take several weeks.

Stargirl1234

It's just only a product switch we are soing

Jemma01

I'm not a financial advisor and very far from it. I would go for 2years, interest has been going down for the last year, doesn't mean it will continue, but my circumstances are flexible and I don't have to worry about the risk of instability, I don't have children or any other debt. 

You need to reflect on your tolerance to an increase in interest along with the product fee. 

movilogo

Put your numbers in a spreadsheet. Compare how much you will be paying during the fixed period (whether 2 or 5 years) then find out average yearly payment. Go with whatever comes lower. 

Having said that, interest rate is likely to go down in short term. Ultimately it down to your personal ability to take risk.