How long would you/have you fix for if you were taking out a mortgage now?
We're moving house and trying to decide how long to fix for. There's about £80 per month difference between the lowest rate of 1.84 at 2 years or the highest rate of 2.5 at 5 years.
Don't really fancy a mortgage deal ending just as we might leave the EU. Thinking about 3 years and overpaying around £70 per month. Not sure, initially at least, we'd overpay much on the 5 year deal. Or given economic uncertainty go for the five years and take advantage of current low rates.
We just remortgaged this month and went for 5 years so we have a couple of years fixed price after Brexit. It could all be fine but I wanted to play it safe. Partner is also employed by oil industry and things are very shakey just now. The bank we're with offer switch and fix deals mid way though fixed terms so we just renewed a year early this time with no charges and got a better interest rate.
We are about to buy a house after a period of renting due to relocation and definitely going to go for 5 year fixed rate as no one knows what will happen post brexit and trump - we have no intention of moving again so not concerned about early repayment charges
It all depends how much of a financial cushion you have.
If you can take the risk that interest rates may have gone up a bit in two years then I would fix for two years. I doubt interest rates will go up much. The govt are desperate to keep interest rates low.
Difference of £80 a month will add up over 5 years to circa 4k. But if you can find a better 5 year deal then do that.
Thanks everyone. Lots of food for thought. I think we're going to fix for 5 years. I don't think we'll get a much better rate at our LTV, but we have deliberately not overstretched mortgage wise, so will focus on overpaying as much as we can. I think ultimately I'm a bit risk averse and the stability of knowing how much we'll be paying for 5 years really appeals.