We went for 5 year when we were in a similar situation. Just the ease of knowing what we would be paying out helped with long term planning and saved the nause of having to go through it all again in a few years!
What's the best rate you can get on the fixes? How much are the arrangement fees? Generally you pay more overall for fixes because banks of course pitch them at a rate that they believe they will make money on. Personally I would always go for a variable rate but it depends how much value you put on peace of mind.
If you want the security of fixed I'd go for the 5year at that rate. It's slightly more than you're paying but rates might be about 2% by then so you'd save a little bit. I'm quite risk averse though and I honestly wouldn't bother.
Are there penalties for leaving your current mortgage to take into account too?
Of course it's 2.24 that we are on now (looking at all these numbers has fuddled my brain)
I do think that the rates will be very different in 2 years time so finding a new deal at that stage while we still have nursery fees to pay will be a lot more difficult which is why I'm veering towards the 5 year one. The one thing putting me off is that we could end up paying more than we need to for the next 2 years if things don't change.
We went for 2, on the basis that we thought rates will have gone up a bit in two years, but probably not much, and we can then fix for 5, whereas if we fix for 5 now they might have gone up a lot in 5 years. But it's personal choice and attitude to risk.
I've looked at a couple of the 10 year ones and the fees to get them are quite big, add that to the jump in the payment I'm not sure overall we'd benefit.
I think I've decided to sit tight for another 6 months at least on out tracker. The news the other night said we were no longer expecting a rise in the new year and may not be until the end of 2016 so will review again in 6-9 months.