To fix mortgage for 2, 3 or 5 years?

[MortgageQuestions2020]

Dear All, I need to remortgage and the options are for 2, 3 or 5 years. It's a Buy To Let, Interest Only Mortgage. I would like a fixed rate so I know where I'm at each month. In the current climate what would you do and/or do you know any mortgage brokers who could advise? I am quite restricted as to who will lend to me as my income is low and I rent (for the last 10 years). I am tempted to stay with and switch products with my current lender (they have been fine) and this is the easiest option although £50 a month more. Also, I don't know whether to pay the fee (£2000) up front or add it to the loan? At the moment I'm thinking fix for 3 years as 2 years comes around very quickly and years and years ago I fixed for 5 years and interest rates shot down and I said then I would never fix for 5 years ever again. Any advice would be very much appreciated - I find this sort of thing very stressful and tend to put my head in the sand however I know this is not an option as I'd then end up on the variable rate and be in real financial trouble. Many thanks.

I’ve gone for five years because interest rates are low (or at least were when I chose the mortgage) right now. Would you want to pay 2k fees now and then have to pay it again in 2-3 years to change deal again? That was a big deciding factor for me!

Not remortgaging but we’ve fixed for 5 years as mortgage rates are at an all time low and unlikely to get much lower.

We went for 5 years. The difference between interest and capital repayment is very small so would you consider paying it off?

We normally we go for 2 years but this year have gone for a 5 year considering how low interest rates are and how unstable things are right now I feel more comfortable with a long fix.

We fixed for two years recently. We intend to remortgage in a couple of years to fund an extension. We wanted to give ourselves the choice of being able to stay or leave our bank altogether depending on what the lending criteria is at the time.

We have fixed for two years the last three times and we didn't pay the product fee. We calculated how much we would have paid off at the end of those two years, added on the product fee and it was always cheaper for us to take the product without a fee.

We fixed for five years as interest rates are crazily low. Even if they dropped to zero the difference in monthly payment would not be hugely significant in household terms so we fixed for five years at 1.69% just over a year ago.

I've just fixed for five years, for certainty and because rates are so low.

A £2000 product fee is very high. How much is your mortgage capital amount, and if there is a product without a fee, what are the respective rates? If the mortgage is not a high amount, you may well be better to get a slightly higher interest rate without the product fee.

To give you an idea, we have recently just fixed for two years with our bank by switching to 1.19%, no product fee. The equivalent 5 year fix with our bank is at 1.45% which is also quite low too. LTV 58%

I'm risk averse so would want 5 years (which is what we have currently)

I have done 2 years but Im moving out of my area so if I don’t like it I can move again easily