2 year or 5 year fix (another)

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ric1982
ric1982 Posts: 222 Forumite
in Mortgages & endowments
Hi,

Another age old question.

I have following two options:

2.44 5 year fix £999.00 product fees
1.89 2 year fix £999.00 product fees (£500 cashback).

Loan amount is £270K.

5 year is about £1800 more for first two years.

Which is better?

Comments

  • Edi81
    Edi81 Posts: 1,444 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
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    Better can depend on your circumstances.
    Are you planning on moving in the next 5 years? What is your attitude to the risk of rates being more in 2 years?
  • ric1982
    ric1982 Posts: 222 Forumite
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    Edi81 wrote: »
    Better can depend on your circumstances.
    Are you planning on moving in the next 5 years? What is your attitude to the risk of rates being more in 2 years?

    Thanks. Most prob. not moving.

    If the rates goes up .. up to 0.5 % then its fine but more then that I will be losing money.
  • xyz123
    xyz123 Posts: 1,663 Forumite
    First Anniversary First Post Combo Breaker
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    ric1982 wrote: »
    Thanks. Most prob. not moving.

    If the rates goes up .. up to 0.5 % then its fine but more then that I will be losing money.

    How is your job security and any planned changes to family? If going with 2 year fix, don't forget to include one or possibly 2 product fees when comparing with 5 year mortgage.
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