Mortgage fixed rate - 2 years or 5 years?

[NoCherrySlurpeeNoDeal]

Hi all, I'm just about to proceed with a mortgage after property and am in desperate need of advice.

I was going to go with a 5 year fixed at 5.50% but due to the recent talk of rates dropping, I am now wondering if a 2 year fixed would be a better idea? The 2 year deal is 6.50%.

House value: £500,000
Mortgage: £250,000

Mortgage payments:

2 year fixed (6.50%) = £1800 pm
5 year fixed (5.50%) = £1600 pm

Would be great to get views, I am desperately confused and now just on a sole income so don't want to make a mistake. I can afford either of the payments above.

Thank you in advance.

Sorry, voting options are:

5 year fixed: YABU
2 year fixed: YANBU

Errr, it's a really spectacularly bad idea to ask randoms on the internet to choose your mortgage. Unless it's on a psychics' message board. Have you spoken to a mortgage adviser?

If after 2 years, the rate is the same or higher - will you still be able to afford it? That's the key question really, the reason for fixing is to be able to know how much you're paying.

What is your joint monthly income after tax?

e.g. the extra £200 for the 5 year fixed - will this be at the expense of something else or do you have plenty of disposable income?

Here are the interest rates since 1975:
https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp

Personally I think I'd fix for 2 years for now, as I don't think rates will go much higher.