Would you remortgage for a 2 or 5 year fixed rate?

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Our fixed rate ends soon and our current lender put the interest rate for 5 years at just under 4%, however, the 2 year fixed rate is around 2.5%.

Would you fix for longer right now due to the economic crisis or 2 years in the hope interest rates will be better then? Are interest rates usually much better within 2 years after a recession?

We fixed for 5 because interest rates are being forecast at 6% by next year, so a 2-year-deal risks finishing when rates are sky high. Plus, bear in mind Liz Truss can't be booted out in another leadership contest for 12 months and if she keeps on this trajectory the economy is going to be shafted and that 6% could end up being a low estimate.

Depends on your circumstances, if you are squeezed then fix for 5. If you have more flex in your budget then you could gamble on the 2 year.

Five years definitely. I don’t think anyone is predicting rates will be back to “normal” in two years now.

But several banks were pulling deals yesterday so you may be too late anyway.

Well played Liz…

I have always fixed for 5 years as I can't be doing with sorting mortgages every 2 years. I would definitely fix for 5 years in the current climate, and was even considering fixing for 10 years. (3.85% with Club Lloyds).

it is so frustrating as my mortage expires on 1 March next year, but if I stay with the current lender, I can change it in December. I will see what they are offering and how often the bank rate is increasing before I make my decision.

*mortgage!

Our 2 year is up at the end of June, we currently have 2.83%.

I'm hoping to lock in a new rate 6 months early to try to avoid a 6% rate, but god knows if we'll manage it (we're with Halifax). But intend to fix for 5 years but likely looking at extending the term.

Our fixed rate expires 1 May 23 and our current mortgage provider won’t let us agree a new rate until 1 January. At this moment in time, our plans change every day. We got burnt in 2008 when we fixed on a higher rate and rates then dropped dramatically. At the moment, our bank will offer us a lower rate on an unsecured personal loan than on our mortgage for our home which has 60% equity. Likewise 2 year fixed rates are higher than 5 or 10. Everything seems back to front. We could take a 6 months payment holiday so if rates are ridiculously high in January we may defer the decision to the last minute, then take a six month holiday to buy us more time and hope and pray that things have started to settle towards the end of next year!

It just all seems so ridiculous! I would have thought 2 years would be higher too.

Ours expires early next year and we can't change the fixed term with our lender yet but it's 3.89% already. I'm biting my nails thinking about how much it'll be by the time we can fix, I'm wondering whether to change now.

We fixed for 5 years when we bought our house (we had rented it for 5 years beforehand so know neighbours/area). Our mortgage broker suggested 5 years as we have no plans to move within that time so it worked out a better rate than 2 years.

Luckily ours is due renewal in Dec 2025 so got plenty of time but I would suggest considering if you are likely to move within the the next 2/5 years. If you have no plans to move then I would fix for 5 years as hopefully things would have settled by then.