Remortgage Rates - Fix for 2 or 5Y? Please advise

[Hope202204]

Hi All! Just looking for some advice on remortgage. My 3y deal coming to an end in September and I’m on discounted variable at the moment (5.7%). I would like to go for fix deal this time and trying to understand if 2 or 5 year fixed will be better. In terms of my circumstances, thankfully I changed job during this 3 years and raised my salary by 20K with good yearly bonus - that seems to give me many options, compare to what I had on original purchase. I’m on my own and mostly looking for some stability really. Not planing to move out, this is my forever home. My LTV is 70% and at the moment best deal I found is 3.88% for 5Y fixed and 4.0% on 2Y deal. Would love to hear if anyone is similar situation and your thoughts on going forward!

Personally I'd take the longer deal for the stability, whilst understanding that if rates do fall back to where they were, I'll be worse off.

At the moment, I wouldn't fix until the last minute. The BoE might drop the base rate a few times in the next six months and then I'd probably go for a 5 year fix if you have no intention of moving.

Personally I always fixed for 5. Security for next 5 years. You know exactly what you are paying which for me was better than a cheaper deal on a 2 or 3 year fixed. You can port it on to next house and haven't got the added faff of doing the whole process again in 2 years.

Maybe if you are more of a risk taker than me, but raising children and all the expense which cane with that made us go for 5.

@ Upstartled Thank you! broker explained I can do Mortgage in principle up to 6 month before my deadline and can simply recalculated it again in Aug ( prediction is for Bank of England to drop by 0.25) so by Sep I should have better rate then 3.88 to fix. I’m more inclined to do 5Y simply for stability as everyone mentioned same reason it seems.

Thank you @ Dvdlove! As far as I read it seems predictions for low rates not so low :) In 5 years the lowest looks around 3.4%, of course it’s only predictions but seems we not going to see rates as before around 2% so having 5Y stability is my preference

Thank you @ Notgetttnganyyounger! Love you name by the way :) I’m far from risk taker and even not having any kids I still would prefer to have longer security as you said. Good to see that everyone has similar thinking!