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Mortgage - would you fix for 2,3 or 5 years?

(22 Posts)
WhatWouldTheDoctorDo Fri 20-Jan-17 21:43:12

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.

Allshadesofpinkie Fri 20-Jan-17 21:52:52

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.

Stilitzvert Fri 20-Jan-17 21:54:48

100% 5 years. We just fixed for 5 years at 1.79%, seems like a no brainer

QuitMoaning Fri 20-Jan-17 21:55:51

5 years for sure. Then you know your budget.

AyeAmarok Fri 20-Jan-17 21:55:57

10 years!

ceeveebee Fri 20-Jan-17 21:56:31

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

MoreThanUs Fri 20-Jan-17 21:57:40

I wouldn't fix at the moment.

MiniMaxi Fri 20-Jan-17 21:58:42

We recently chose 5 years

Longdistance Fri 20-Jan-17 21:59:51

Go for 5 years as the interest rates are really low at the minute, and it may not last.

228agreenend Fri 20-Jan-17 22:04:24

I prefer knowing how much I'm paying each month so would fix for five years. You nay lose out finacially, but you have that certainty.

WhatWouldTheDoctorDo Fri 20-Jan-17 23:24:59

That's almost unanimous! Why wouldn't you fix MoreThanUs?

INeedNewShoes Fri 20-Jan-17 23:30:17

If you're fairly sure that you won't want to move then I'd definitely fix for five years.

I'm trying to make this decision at the moment but although I am very happy where I am there are family circumstances that mean I could want to move within five years.

The early repayment charges are an absolute killer on the longer term fixes.

ceeveebee Fri 20-Jan-17 23:58:00

This is why we will be fixing. If rates go up to the levels seen in 70s/80s we end up having our house reposed

ceeveebee Fri 20-Jan-17 23:58:22

Or even repossessed

WhatWouldTheDoctorDo Sat 21-Jan-17 08:49:30

Definitely no plans to move. I'd expect us to be there for at least 10 years.

DragonMamma Sat 21-Jan-17 16:58:36

We fixed for 5 years, 2 years ago and I wish we hadn't and went for the 2yr fixed so we could fix again this year, for another 5 years.

As it stands, we'll be coming out of our fixed deal a year after we leave the EU confused

FourToTheFloor Sat 21-Jan-17 17:03:49

We fixed last time for 3 years and it will end December this year. I feel like this will be a terrible time to be coming out as I think March and the triggering of A50 will start it all.

If you've no plans to move I'd fix for 5 years and over pay if you can.

EagleIsland Mon 23-Jan-17 16:21:01

We fixed 3.75% for 25 years

pinkandstripey Mon 23-Jan-17 16:43:47

We've just fixed for 5 years at 2.1%.

we've used a broker for new mortgage and remortgage, every person we've spoken to has advised to fix for as long as possible.

PossumInAPearTree Mon 23-Jan-17 16:49:46

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.

WhatWouldTheDoctorDo Mon 23-Jan-17 22:12:43

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.

Chippednailvarnishing Mon 23-Jan-17 22:17:55

Just fixed for 7 years and taken out 1/3 if the mortgage sum as cash in case brexit really stuffs us.

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