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Original poster

How long for fixed rate mortgage?

18 replies

Shallysally · 16/02/2022 14:39

I’m currently completing a remortgage application. Need to decide which product to go for. I know it’s difficult to predict the interest rates long term.

Difference in monthly payments is negligible. So what do you wise finance savvy people advise please, 2 yr or 5 yr fixed?

OP posts:
gogohm · 16/02/2022 14:40

I opted for 5 years, unless you are likely to move of course

Original poster
Shallysally · 16/02/2022 14:45

No, no plans to move. I’ll check if it’s a portable mortgage though. Thank you.

OP posts:
Monkeybunkey · 16/02/2022 14:46

I'm just doing my remortgage (via a broker as I've got a lifetime membership with them). I'm going for another 5-year fixed rate as I have no plans to move. Interest rates are starting to go up so, unless you are looking to move in the next couple of years, fix for as long as you can.

RagzRebooted · 16/02/2022 14:47

I'd fix as long as possible, rates aren't going to go down.

Cheeseycheeseycheesecheese · 16/02/2022 14:49

We did 5 years when we bought the house, the did 2 when we remortgaged last year as we're planning to sell up this year, so didn't want to be tied up longer (didn't even considered a portable product)

Woeismethischristmas · 16/02/2022 14:49

I went with five years, two years ago! I think I’ll probably come out better overall as interest rates are starting to rise. Definitely want to overpay it for a few years as I suspect rates will be a disaster at renewal time.

BobbinHood · 16/02/2022 14:51

I’d do 5 if you’ve no plans to move and the difference isn’t significant.

PlugUgly1980 · 16/02/2022 15:06

It's less about whether you are likely to move that should be the consideration but whether you are likely to redeem your mortgage and pay it off or want to pay off more than the (usually 10% repayment allowance), as there can be substantial repayment charges for technically redeeming early within a fixed period.

PrinnyPree · 17/02/2022 10:53

5 years definitely if theres not much in it, we just finished our 5 year mortgage and have managed to pay off the rest. The peace of mind of knowing your mortgage payments aren't going to change for 5 years is brilliant for budgeting.

Especially since there might be interest rises and cost of living rises it'll be good to have one constant. X

PolkadotsAndCandyfloss · 18/02/2022 01:38

@Woeismethischristmas

I went with five years, two years ago! I think I’ll probably come out better overall as interest rates are starting to rise. Definitely want to overpay it for a few years as I suspect rates will be a disaster at renewal time.
Yes, I’m also trying to overpay so that we’re in a better position if rates are bad when we renew. We’ve got 2 years of our 5 year fix left. I would go for 5 years OP, it’s peace of mind for a good length of time and I’ve been pleased we did it as it’s one less worry in these very worrying times!
LargeProsecco · 18/02/2022 09:30

I went for 5 years in September, with Nationwide - at 1.04% - it's a huge relief now to have that security.

LennyFitz · 13/04/2022 16:03

Just bumping this thread as I have a similar query. I'll be discussing with broker too but always helps to get a few opinions! I'm not quite understanding the downside of a 5 year fixed term (aside from slightly higher rate I believe). I read that most mortgages are portable, but some people on this thread said that if you're moving within that time it's an issue? So can you / can't you move within that timeframe without negative financial side effects?

Original poster
Shallysally · 13/04/2022 16:29

Hi @LennyFitz. I ended up going with a 5 year term as I have no plans to move.

Re portability of mortgage, I’m not really sure about that. Mine does state that it’s a portable product, so presumably this means that I will keep the mortgage at current rate if I do move, but that it will be subject to usual procedures, searches, valuations etc.

OP posts:
LennyFitz · 13/04/2022 17:44

I spoke with broker and it sounds like portability isn't so much the issue, it's more whether our lender would still be suitable if we moved house, eg. what if our criteria changes, would we get the money we need, would they still lend anything etc. We obviously wouldn't want to be forced into moving lenders and a massive early repayment fee, but it feels less of a concern that I thought.

It's sounding more like it's a gamble between whether our increased equity and lower LTV would give us the better rates after two years, or if the 5 year term is better, even with our lowly 10% deposit, considering all the interest rate instability. Apparently, today at least, our 5 year interest rate offer is actually lower than our 2 year, which is quite bizarre.

I wish it didn't all feel like a massive bet! Never had much luck on the horses...

CottonSock · 13/04/2022 17:48

Just done 5 years myself

Padderbadger · 13/04/2022 17:50

Following out of interest!

2ndBorn · 13/04/2022 17:53

We’ve done 5 years both times. We fixed a 5 year in Jan then moved in the August, just ported our mortgage and got another 5 year one.
We need the stability & interest rates were very low.

AnneElliott · 13/04/2022 23:04

We did 5 year fix last year. I'm pleased we did - the rates we got aren't available now.

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