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Original poster

Boring - mortgage

74 replies

Dollygirl2008 · 15/06/2022 06:31

So my mortgage advisor has come back with some renewal options but I'm torn between 2 year fixed rate, 2 years or 5 years - can I ask what you would do?!

OP posts:
LadyLolaRuben · 15/06/2022 06:35

Id6 take the 2 years. If there's a 5 year option, that means providers think interest rates won't be that high in 5 years time or they wouldn't offer it as they'd lose money. I've got friends who locked in before Brexit for 5 years and regret it now as rates are better.

Chevyimpala67 · 15/06/2022 06:38

Things have changed a great deal since brexit....
Take the 5 years

Mybeautifulfriend22 · 15/06/2022 06:39

I’ve took the 5. Everything seems so unstable at the minute we preferred to fix for a while. Personal choice. We over pay a bit too.

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General money
BackToTheTop · 15/06/2022 06:40

If the 5 year is a good rate then go with that.

Remainiac · 15/06/2022 06:45

We’ve just taken a 7 yr fix which will take us to the end of our mortgage. We’re happy with the rate and like the certainty.

ActionNeeded · 15/06/2022 06:51

For me, if I could afford the monthly costs, I’d lock in for five years (as I’d only need to do that a couple more times to get to the end of the original 26 year mortgage). But it would be more sensible to go for 2 years fixed, as with brexit and covid - lots changed including interest rates, and I was ‘locked in’ at my 5 year percentage when all those on variable enjoyed the relief as interest rates plummeted. Personally, I would always choose (even if it’s a bit higher!) a fixed rate over a variable one, as I like to know where I stand each month knowing EXACTLY what is leaving the account on DD day as my income is variable (locking in at xxx per month for five years gave me peace of mind - hopefully(!) I’d always be able to cover the mortgage first and still have enough money for major bills and then food for the next five years (providing the ‘increased cost of living’ does actually calm down a little -> i’m looking at you co-op with your 2 pints of milk at 1.20!! Up from 95p just a few weeks ago. I used to get change from a pound!! Ha. I feel old now. I’m moaning about the cost of milk😬😬. Uh mortgage. Yeah. Do what’s best for you and your circumstances personally:


  • do you prefer a fixed cost?

  • are you flexible and don’t mind paying a little less some months, but this could change as interest rate does (eg, more of a tracker type mortgage) and potentially get quite high (you can play about with online mortgage calculations and see how a percentage change affects your monthly owed - could you afford it if it jumped from eg. 3 percent to eg. 6 percent or higher??)

User354354 · 15/06/2022 06:52

A year ago I would say 2 year fix. However with the way the world is currently I would go for the 5 years for the certainty- providing you are are happy with the rate.

lemondrop72 · 15/06/2022 06:54

We just fixed for 5 years. The rate was similar to what we took out on our original mortgage and things are only going to get more expensive.

KarrotKake · 15/06/2022 06:57

Interest ratescant go much lower, so they are likely to stick or rise.
Are you saying you've been offered 2 different fixes, or 3 products - one fixed and 2 variable?

I'd fix for as long as possible right now.

SonSonSon · 15/06/2022 06:59

5 years. Absolutely.

Rooma · 15/06/2022 06:59

I'm on a lot of money/ investment forums. General consensus is take the 5. Medium term peace of mind and predictability is what I'd be looking for when cost of living across the board is going up as much as it is right now

carefullycourageous · 15/06/2022 07:01

There is no right answer as it is about the future.

You have to evaluate:
a) your approach to risk
b) the likelihood of your circumstances changing and whether that means stability (predictable bill levels) or flexibility (freedom to move) is better

I tend to think what scares me more and do the opposite - so I would take the 5yr fixed as the thought of not being able to get an affordable deal in 2 years' time is a concern to me, expecially as the UK financial picture is forecast to worsen not improve yet.

Eileen101 · 15/06/2022 07:03

Mines coming up for renewal and I'll be going for the 5, so that I've got the certainty.

Igmum · 15/06/2022 07:03

I fixed for 5 years a few months ago. The rate was a good one, I could afford it and I reckoned general interest rates would rise by more (they did).

Original poster
Dollygirl2008 · 15/06/2022 07:05

Thanks all. The offers are all affordable (well....) and are fixed rate for either 2, 3 or 5 years (the two and 3 years are the same monthly payment and the 5 year is £7 a month more)

OP posts:
BooksAndChooks · 15/06/2022 07:07

What is the interest rate on each?

We just fixed for 10 years. It is a good rate though, 1.86%. As PP said to my mind there isn't much lower I could get than that rate, but it can go much, much higher. I also know we can afford the payments at 1.86%, if they went up to something like 7% we would really be struggling.

The other thing to consider is that remortgaging can sometimes involve paying a product fee, and I think it's beneficial to only have to pay that once, rather than every 2 years.

BooksAndChooks · 15/06/2022 07:08

Just read your update.

I would go for the 5 year fixed so long as you no plans to move.

coodawoodashooda · 15/06/2022 07:08

I'd go fixed for 5. Have you looked at the benefits of overpaying each month?

MistressOfWaves · 15/06/2022 07:08

We just fixed our new mortgage for 5 years but then I’m not a risk taker

Didicat · 15/06/2022 07:16

I prefer my mortgage to be like rent in the respect I want it to be the same each month….

id take the 5 year fix at only £7 extra a month

rwandanothanks · 15/06/2022 07:32

Could you look at how much more you are paying for the luxury of being fixed for 5 years and then work out what the interest rate would have to be after the 2 years to make a saving?

lady725516 · 15/06/2022 07:37

If you have no plans to move any time soon I would fix for 5 years

ThanksNoThanks · 15/06/2022 09:07

Interest rates are going up up up. I was deciding between 5 and 10 but went with 5.

MrsMoastyToasty · 15/06/2022 09:12

If you are not planning on moving then the 5 year fixed. Rates can't go much lower, but they can go a helluva lot higher. (I took my mortgage out 30 years ago at 13%).

Lavendersquare · 15/06/2022 11:27

After living through the early 90's with a mortgage that increased monthly I would take the 5 year fixed deal. The fact that it's only £7pm more us well worth it for the peace of mind you'll have.

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