2 or 5 year mortgage fix? WWYD?

[Passthewinebottle]

So thanks to some previous credit issues, our new mortgage rate is 5.6%. Currently 1.59%. We've been advised it may be better to stay with the current lender to avoid credit checks. It's going to be just over £300 a month more.

There's only about £25 a month difference in fixing for 2 or 5 years. The credit issues won't have dropped off in 2 years, so are we better just going for 5 years?? Obviously no one knows, but what are the thoughts around how rates might look in a couple of years?

I hate this uncertain world we live in right now 😩

I've just fixed for 5 years - gives some certainty.

Tricky to tell, as I would hope in 5 years things will have changed

We have just (today) applied for a 10yr

The 5 year rates are less than the 2 year rates, the banks think this is a temporarily issue. And I'm inclined to agree.

@Passthewinebottle

depends in if you need certainty

Thanks everyone. Thinking on it some more, I can't imagine things will have changed overly hugely in 2 years, so I think we'll go for the 5. At least I know by then that these credit issues will be off our files, thank god. £1,000 a month though 🤢

I fixed for 5 years earlier this year and stayed with the same lender as it was easier.

I would go for 2 years as the interest rates are soaring high at the minute, so I imagine they will go down in 2 years time.

If you can afford the payments on the 5 year and would struggle if they did shoot up, then fix for 5.