Fix mortgage for two years or five?

[NewsreaderChic]

What would you do? We've been offered 2.1% for two years or 3.1% for five years. Either way we'd save a fair bit on what we are paying at the moment. The two year option will of course be cheaper, which is tempting but I don't have a chrystal ball so who knows what interest rates will be doing in two years.

I can't see any scenario in which interest rates are lower in two years. This is the lowest they've ever been.

It's always guesswork, but the indication was the rates are likely to go up soon. What are your plans? Are you planning to stay in the house for 5 years? Is there a massive exit penalty if you don't, and are there any variables on the cards that might change your plans, eg job change, more kids.

FWIW, we fixed for 5 years this time last year and
I'm glad we did. I like knowing what the mortgage will be each month, no being able to plan round it.

We've recently gone for 5 which gets Ds through uni , hopefully.

Interest rates are only going to rise. If you're planning to stay in the property for the 5 years, I would take the longer term.

We don't plan to move, in five years time we'll have one starting her second year of Uni, one about to start her first year and one going into Year 13 - so we'd be. About to hit a very expensive time.

Interest rates will rise - they cannot go any lower - but not by much for many, many years

we fixed for 10 years a few months ago. we know rates are going to start going up at some point and I didn't want the worry of what the rates would be like in a few years. there was a great deal less than we have been paying so I just fixed for 10 years. I'd go for the longer term if you are staying in your house.

I would opt for the longest fixed rate possible but I am very risk averse. I would rather pay a slightly higher rate and know that if is affordable over a longer period of time than be constantly worried about the impact of rate rises. I can't see rates going the way the did in the 80s but I can see them rising.

MrsOs
But what did you fix at ?
because if the fix is at too high a rate you are not better off

i cant remember the exact rate but it was cheaper than the tracker we have been on for ages. What we were paying before was more than manageable so i thought it was a no brainer.