5yr fixed rate mortgage - sensible now or shorter term?

[got2bebrave]

been offered a fixed at 4.51 for 5yrs 5 month. no valuation fee and can overpay 10%

is 5yrs too long a term right now or sensible?

Petrified of making this decision as a single mum so appreciate any advice :/

I would fix in your position, its a gamble either way but if you can comfortably afford the payments for the next 5 years it gives you stability not worrying about further increases. It can go either way but I would just fix for the peace of mind.

Mummy bear said exactly what I was thinking. I prefer to know where I stand and so have always opted for fixed mortgages. In the past, I have lost out when interest rates have dropped during some periods, but I preferred knowing how much was going out of my account each year.

If you can afford the fixed rate, and are happy with the amount, then stick with it. You’ll then know where you are for the next five years.

Assuming you are not looking to move in that time, and nothing else family wise or work wise is due to change I would consider it.

Have you gone direct to lender or gone through a broker? If direct I'd get some figures from a broker as well because rates have come down, and currently the longer you fix the cheaper the rate I've found.

Personally I would go on a tracker (normally you can exit these without early repayment charges if you wish to fix later). Interest rates will probably rise first but then start to come down.
If I was remortgaging now, I wouldn’t fix. Having said that if you are risk adverse, then a fixed rate does give you that certainty.

Thanks all. I fixed and boy am i glad now. But i have issues from the survey so i might be out of pocket anyway - lol. This house buying nonsense is enough to drive you insane, but that's a thread for another day! lol

Agree with PP, would probably go with a tracker at this stage because it looks like although interest rates will probably climb a bit more this year, they are likely to come down again in not-too-distant future. Or fix at 2 years, but I'd be pretty wary of fixing for 5.