To think a 5year fix on your mortgage is a con right now?

[Bluffysummers]

Admittedly this isn’t really my opinion more of wonderment?

my fix is coming to an end (joy) and when I last took out my mortgage, you paid more to fix longer and now it’s the opposite it’s the shorter rates that are more expensive.

traditionally you paid a bit more for security, and now it’s less? Is that a ‘sneaky’ (not the right word but let’s go with it) tactic from lenders to lock in customers at a higher rate for longer as they are envisioning the BR and thus their interest rates going down?

what are people thinking 2 v 5 year? I was thinking intially 2 due to the predictions that inflation will be close to the BoE target in mid point 2025 and therefore interest rates will come down (probably not to what they once were, but down none the less) so if you’re locked in for 5 years, you’re stuck. But then 5 years grants you the ability to budget for 5 years

Completely agree with those saying it’s more about buying piece of mind 👍🏻 we’re in that position. Bought at the end of last year and fixed for 10 years at 3.2%. Quite a few people tried to steer us away from the 10 year fix but for us, the next 10 years should (hopefully!) cover us having a second child if we decide to and the childcare years etc. We know we can afford that even with me being on SMP again or if we were to decide I wouldn’t return to work if we had a 2nd child (DH works away for long periods of time so this is a likely option).

We locked in a new rate of 4.07% starting from September and fixed for 5 years.
My reasoning: a) it’s affordable b) there is only £50 difference between this rate and 3% should it fall soon and c) if there is a huge fall in rates in 2 years or so (sub 0%, lol), the EPC won’t be massive then so I ll pay and refix

If it was 3/4% I’d definitely go 5 but now I’m seeing the 5/6% and god it’s more than double actually close to triple what we were paying 😫

It's not a con, it's how pending works. It's super shit for the borrower at the moment though.

It's been same dilemma for savers, though. I put cash in a fixed rate account last year, now earning a pittance compared to savings rate I could get today.

Or FTB. DS has dreamt of buying for years, he exchanges today. Maybe that investment will go south. All a pain.

We're buying now and getting a 5 year fixed, luckily got the mortgage offer in March. We know rates may reduce but we just wanted the certainty of the monthly payments for that period