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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:
helpingouthouse · 15/06/2022 11:38

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)

If you went with the two year deal you would need the payments to go up less than £12 per months following this to have lost out

Summerwhereareyou · 15/06/2022 12:58

Rates are so low at the moment anyway!
Take the 5 year's!

helpingouthouse · 15/06/2022 13:30

Could always look at 10 years ..

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General money
Thursday37 · 15/06/2022 13:32

I’d go 5 year fixed, you can always port it even if you move sooner.

ISeeTheLight · 15/06/2022 13:34

I would fix at long as possible if you're not planning on moving. Interest rates are rising; we're in the process of buying a new house and were stress tested at interest rate to 10%. The rates are on the rise; our broker said offers are not lasting long and and when people wait to long prior to proceeding very often the interest rate increases. They also advised 5yr fix minimum as we're not planning on moving again.

MiniatureHotdog · 15/06/2022 13:36

5 year definitely. Our 5 year fix runs out in two years and we're expecting it to be a higher rate when we fix again.

DialsMavis · 15/06/2022 13:43

We went for 2 years last year as our house had increased in value a lot and we wanted to renovate, with plans to do the same in another 2 years for some more work. I really wish we had fixed for 5 years now!

Remainiac · 15/06/2022 14:35

coodawoodashooda · 15/06/2022 07:08

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

We fixed at 7 yrs and overpay 30% each month, which will save us £20k in interest over the 7 years.

PicaK · 15/06/2022 16:03

Bank of England meeting tomorrow and predictions are now that interest rates are going up 2mrw and to 2% by the Autumn. (Whereas a few weeks ago it was rising again at end of summer and up to 2% by January time)
Cost of living set to rise food price rise and energy increasing in October.
So if you can fix today I would.
Stability is very attractive atm

NoSquirrels · 15/06/2022 16:09

Can’t you list the exact offers, OP? Are there arrangement fees?

Anyway, whether you fix for 2, 3 or 5 is largely to do with what you think might happen personally to you in 2, 3 or 5 years. If you’re planning (more) DC, or think you’ll change jobs, or might want to move etc. What are your circumstances?

Blossomtoes · 15/06/2022 16:11

Five years. Interest rates are only going one way.

coodawoodashooda · 15/06/2022 17:18

Remainiac · 15/06/2022 14:35

We fixed at 7 yrs and overpay 30% each month, which will save us £20k in interest over the 7 years.

Show quote history

That's amazing

longtwrn · 15/06/2022 17:19

@Remainiac

We fixed at 7 yrs and overpay 30% each month, which will save us £20k in interest over the 7 years.

How do you work out what overpayments have on the interest savings please?

pfills · 15/06/2022 17:21

I think it's going to be a tricky few yrs so am fixing for 5.

AnneElliott · 15/06/2022 17:53

Agree you should go with the 5 year fix. Interest rates are only going to go up. We fixed in 2020 and in 2021 for 5 years ( we have 2 products) and the rates we got are no longer available.

Original poster
Dollygirl2008 · 15/06/2022 18:18

Thanks all

I had to get the decision in by close of play tonight so I've gone for the 5 years fixed rate

You never know - I might actually be able to get through on the phone to nationwide to pay off this years 10% allowance......

OP posts:
Summerwhereareyou · 15/06/2022 18:36

Long ten

Google mortgage overpayment calculaters.

Martin Lewis does skme and also first direct

Sallypally0 · 15/06/2022 18:39

How can we possibly answer without knowing the actual % interest rates?

Bizarre thread.

Original poster
Dollygirl2008 · 15/06/2022 20:10

Sallypally0 · 15/06/2022 18:39

How can we possibly answer without knowing the actual % interest rates?

Bizarre thread.

It really isn't.

I asked for advice, 40 odd replies. I didn't ask for the advice on interest rates - just the terms

But thanks for your helpful comment

OP posts:
Remainiac · 15/06/2022 20:19

longtwrn · 15/06/2022 17:19

@Remainiac

We fixed at 7 yrs and overpay 30% each month, which will save us £20k in interest over the 7 years.

How do you work out what overpayments have on the interest savings please?

The mortgage lender worked it out for us.

MoodyTwo · 15/06/2022 21:10

I've taken a 10 year fix, I can afford the repayments and it's better then the alternative

coodawoodashooda · 15/06/2022 22:43

Dollygirl2008 · 15/06/2022 20:10

It really isn't.

I asked for advice, 40 odd replies. I didn't ask for the advice on interest rates - just the terms

But thanks for your helpful comment

Show quote history

But the interest rates affects the answer about what you should do.

TamSamLam · 15/06/2022 22:59

@BooksAndChooks where did you get 1.86% over 10y from?
Appreciate not everyone gets offered the same but I can't find less than 2.99%, I don't want to be missing out!

BooksAndChooks · 16/06/2022 03:08

It was with Lloyds about 2 or 3 months ago. I don't think its available anymore, it's gone up to 2.79 or something.

Scary how fast it's increasing.

heidbuttsupper · 16/06/2022 03:15

I recently fixed for 10 years

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