Would you fix for 2 or 5 years if buying in July 2025 if….

[Ecrire]

You don’t have a crystal ball about interest rates but -

1. You have been offered a 4.36% rate on a 5 year fix
2. Your credit profile is due to improve significantly in about 1 years time
3. You’ll have completed at extension in 1.5 years time and intended asking lender to revalue house for a second mortgage on new value of house

In this context would you fix for 5 years or - fix for 2 years and at the two year mark take new improved house and stronger credit profile to a side market of lenders and see what the best remortgage deal is?

Do you definitely have clear funds for the extension? You may need to pay for a revaluation after extending. If both of those are fine I might go for 2 years. I wouldn't be concerned about fixing for 5 years at the moment though.

On a previous property when our deal ran its course and we remortgaged we’d added an additional room to the house and the bank did a desktop valuation on new value of house but we didn’t pay for it. Is that what you mean by a new valuation ?

I should add that the monthly payments on 2 year rate are £50 more each month than the 5 year rate

hm not sure what I’d do. Don’t forget you’d also need to pay amount c£900 for the remortgage product fee too at 2 years.

I just remortgaged for 5 years after coming to the end of a 2 year deal.

I have a small-ish mortgage (£60k) and with all the financial uncertainty/the economy at the moment I thought it was the best option for me.

No product fee either as my usual mortgage broker arranged it for me with the same lender and no in depth checks needed beyond them doing a basic credit check.