2yr or 5yr mortgage

[Lightupmynorthernsky]

Just that really. My current mortgage deal ends in a couple of months and I’ve got the options of a 2yr or 5yr fixed terms. Should I lock into a 5yr deal at a slightly higher rate (not much) if cost of living etc is going to rise like it is forecast?

I'd go 5 year

I've done 5 year as it wasn't much more than 2 year and I wanted the security of knowing it wasn't going to jump in 2 years if things changed

Fix it for as long as possible surely

If its not a hige difference, definitely 5 yrs. I did that last year and so glad because interest rates will creep up even if its slowly. Plus most 2yr deals come with a fee which with such low interest rates you end up not saving much by paying the fee.

Thanks. I was thinking 5yrs and there’s no fees to pay

When I remortgaged last year I was offered a choice of 2, 5, 7, 10, 15, or whole terms fixes. I was astonished that this was available, as I've never heard of it before. Your lender may have similar products that they just don't advertise. Might be worth finding out if they do.

Don't forget about early repayment charges if you want to break the deal.

What happens if you need to move house in 2/3 years time. Is the mortgage portable?

I don't like 2 year options as you will get stung for arrangement fees again in 2 years. I always choose between the 5 year fixed and the variable (if that is a lot more competitive and if you can afford for rates to rise).

Most longer term mortgages are portable although can be problematic if you need to break a chain/go into rent in the short term.

I have always gone for a 2 year fixed. I even went for a 2 year tracker a few years back as it was the lowest rate and thankfully didn't go up (no ERC if it had)
I have for the first time in years gone for a 5 year fixed this time around. With so much uncertainty at the moment and knowing that pretty much everyone is going to face increases in all areas, I'd rather not have to worry about the mortgage rate. The difference between the 2 and 5 year fixes was minimal

I’ve just been having this conversation with my DH and we are going for a 5 year fix this time. Half our mortgage is on a super-low tracker but the other half we can remortgage at a tiny bit lower rate than it is now. I’m very keen to have it fixed and we definitely don’t want to move or anything; I was pleasantly surprised by the 5 year rate

We just went 5 year fix as market is saying rates will rise several times this year so think that made 2 year unattractive. Plus in 4 years time both our DC will be in school and we will no longer have nursery fees so we know we can manage our repayments at this fixed level (we are about to buy our forever home so know we won’t be breaking the deal and face an ERC)

I always go for the 5 year fix

We are about to get a new mortgage and will go for a 5 year fix.

We've actually ported our mortgage twice in the past and it was really straightforward both times so I don't worry about that too much.

5 year fixed.

We have an application in at the moment! Our advisor said to take the 5 year, so we did. Plus it's no fees.