# How long to fix Mortgage for ?



## dannygdesigns

Wanting some advice on how long to fix a buy to let Mortgage for:
My 2 year fixed is expiring next month and wondered what everyone thought on how long to fix the next one. With the current trends are mortgage rates increasing ? Is it wise to lock for 5 years? 

Thanks


----------



## bigalc

I will be looking for 5 yr fix the next time.
Its good to know your payments are the same every month and you can overpay if you wish.


----------



## wish wash

Interest rates are only going one way. The actual demand for 5 year fixed mortgages have been on the decline. 2year rates are cheaper and that's swaying people.


----------



## Stoner

I have just remortgaged my house and our BTL and fixed them both for as long as I could (5.years and 3 years respectively) to ensure Ii know exactly what my payments will be for as long as possible.

As bigalc mentions, I am able to overpay on both should I have some spare cash which is a great option


----------



## kingswood

depends on ur LTV, by getting a 2 yr one it gives u chance to add value to get a better rate.


----------



## fatdazza

Unless you have a crystal ball, there is no right or wrong answer.

If you had told people in 2009 that that base rates would be 0.5% for the next nine years, people would have said that you were nuts.


Base rates could be 0.5% for the next 10 years. They could be 5% in two years time. No one knows, if they did they would be very, very rich 

The market projects rates into the future, but that is all they are, just projections, and those projections change as the future draws nearer.

It all depends on your attitude to risk. If you want low risk then fix for a long time. If rates then rise then you chose well, if rates remain very low or fall, then you chose badly.


----------



## Pauly.22

We have kept ours as a tracker, we over pay as much as we can and if rates start to rise we will fix it. 

Paying £80 extra per month currently reduces our mortgage by 4 years 10months,


----------



## DrEskimo

Another consideration is whether you want to move. Fixing your mortgage for 5yrs, but then moving in 2 means either sticking with the same provider (which may be less competitive) or paying hefty early repayment fees to switch. 

I’m constantly looking to move so stick to 2yr fixed rates....


----------



## AndyN01

IMHO the next few years are likely to be quite volatile as far as the financial markets are concerned.

As has been mentioned it's all about your attitude to risk.

You could go for a couple of years and find that things are substantially worse and wish you'd gone for 5 or the other way around.

Good luck with your choice (from one who went through the double figure interest rates and the "have an endowment it'll easily pay off your mortgage" fiasco).

All the best.

Andy.


----------



## slineclean

Like already said , if we all had a cystral ball. I believe there’s only one way they will go and that’s up. I fixed for 10 years ( 15 mths ago ) and up to yet I have been able to pay a extra £100 a month


----------



## LeeH

I’d go for 5, these rock bottom rates won’t hold forever. 

I’ve always gone 2 years over the previous few terms but next year I’m fixing for 5. 


Sent from my iPhone using Tapatalk Pro


----------



## Arvi

As well as factoring in whats said above, accommodate for the cost of remortgaging every couple of years. Booking fees, valuation fees, mortgage broker fees, legal fees can easily add £1-2000 on top of your new mortgage. Pay that at year 0, 2 and 4 and that could easily be more expensive then a 5 year deal.


----------



## robertdon777

I usually do 3 or 5 just because I like fixed costs.

It's more expensive like this but i'm happy.

Next one due soon and I'll fix for 10 if the rates are fairly low still as this will see me out of my mortgage.


----------



## Paul08

I’d be fixing for as long as possible, my worry isn’t interest rates, it’s the value of USD and it’s impact on £ that worries me. I’d rather have fixed costs for a longer time in case of hyperinflation. I work in finance and sadly it’s also my hobby along with detailing, we live in worrying times.


----------



## kingswood

when u do decided the next question is do u go with a mortgage with a fee or not?

my mortgage man said anything below £100k-£105k its better to pay a higher % and a free product.

easiest way is to look at total coat per £1000 to borrow


----------



## Leebo310

slineclean said:


> Like already said , if we all had a cystral ball. I believe there's only one way they will go and that's up. I fixed for 10 years ( 15 mths ago ) and up to yet I have been able to pay a extra £100 a month


Who did you get your 10 year fixed with mate?

Sent from my iPhone using Tapatalk


----------



## pxr5

For me, the most important thing would be is how quickly I could pay off a mortgage. Therefore I would look for the lowest penalties and the least limitations of regular over-payments, to the maximum I could manage. This can be hindered by a fixed mortgage.

In 2008 I was on a fixed mortgage. Whilst I was overpaying, it was restricted to how much. However once that fixed term ended I could overpay as much as I wanted without penalty.


----------



## DrEskimo

pxr5 said:


> For me, the most important thing would be is how quickly I could pay off a mortgage. Therefore I would look for the lowest penalties and the least limitations of regular over-payments, to the maximum I could manage. This can be hindered by a fixed mortgage.
> 
> In 2008 I was on a fixed mortgage. Whilst I was overpaying, it was restricted to how much. However once that fixed term ended I could overpay as much as I wanted without penalty.


Didn't that result in you going to the SVR though?


----------



## dannygdesigns

I decided on 5 year told my mortgage guy yesterday. I don’t plan on overpaying at all as the tenants are paying my mortgage off nicely I plan on keeping it ticking over for the full duration. (25 years)


----------



## shl-kelso

slineclean said:


> Like already said , if we all had a cystral ball. I believe there's only one way they will go and that's up. I fixed for 10 years ( 15 mths ago ) and up to yet I have been able to pay a extra £100 a month


I did the same with First Direct - no upfront fees, decent rate for the fix, ability to overpay as much as like with no penalty apart from early repayment in full. They also covered all legal fees etc as part of the process.

I'm overpaying too, and hope to knock at least 5 years off my remaining term this way. With a push I might even manage to clear in 10 years, which avoid any nasty shocks should interest rates have rocketed in the meantime.


----------



## pxr5

DrEskimo said:


> Didn't that result in you going to the SVR though?


Yes, which was a lot lower than the fixed. For me fixing in 2008 worked out poorly.


----------



## DrEskimo

pxr5 said:


> Yes, which was a lot lower than the fixed. For me fixing in 2008 worked out poorly.


Ah yes. I imagine 2008 was a bit of a different time compared to today...!


----------



## RedUntilDead

shl-kelso said:


> I did the same with First Direct - no upfront fees, decent rate for the fix, ability to overpay as much as like with no penalty apart from early repayment in full. They also covered all legal fees etc as part of the process.
> 
> I'm overpaying too, and hope to knock at least 5 years off my remaining term this way. With a push I might even manage to clear in 10 years, which avoid any nasty shocks should interest rates have rocketed in the meantime.


Sorry to jump in but I looked at first direct too. Was you a new customer and di£ you switch your banking to them? Did they ask for a survey?

Think we might go 5 years instead of two


----------



## shl-kelso

RedUntilDead said:


> Sorry to jump in but I looked at first direct too. Was you a new customer and di£ you switch your banking to them? Did they ask for a survey?
> 
> Think we might go 5 years instead of two


New customer and did not swap bank accounts (although I might as my current bank is useless!!).

I did need a valuation survey (organised and paid for by First Direct) because my house could not be identified or show up in their valuation system. This did extend the process by about a month, but the rate/terms were reserved from the day I made the initial application so no risk if it being withdrawn in the interim.


----------



## Rozzer32

We just fixed for another 2 years. Could have fixed for 5 and did look at it. However the difference in cost naturally was better for the 2 year and the base rate will have to jump a fair bit for it to have been the wrong choice. Plus we’re looking to move in 2 or 3 years so didn’t want to be stuck with one provider or pay hefty repayment fees.


----------



## slineclean

Sorry chap only saw your message. It was with HSBC

QUOTE=Leebo310;5467965]Who did you get your 10 year fixed with mate?

Sent from my iPhone using Tapatalk[/QUOTE]


----------



## slineclean

I looked into what over payments I could make , and the £100 I'm paying is no where near what I could pay. Felt abit gutted at the time but least it's something and better than nothing.

QUOTE=pxr5;5468014]For me, the most important thing would be is how quickly I could pay off a mortgage. Therefore I would look for the lowest penalties and the least limitations of regular over-payments, to the maximum I could manage. This can be hindered by a fixed mortgage.

In 2008 I was on a fixed mortgage. Whilst I was overpaying, it was restricted to how much. However once that fixed term ended I could overpay as much as I wanted without penalty.[/QUOTE]


----------



## Andy1972

Just check what your rate will be when the fixed rate expires. My 3 year fixed 4.6% came to an end 8 years ago, just when we hit the recession. I panicked till I spoke to them. My ‘variable’ rate was then going to be 0.5% above base rate. At the time base rate was 0.5% so my mortgage actually dropped by £300 a month. Each time they increase rates at Bank of England it makes £15 difference as they are doing it so slowly.

With about 10 yrs left, I won’t be going fixed rate any time soon!


----------



## Radish293

The best advice I ever had was dropping fixed rates for an offset mortgage. Best thing we ever did and paid it off years sooner. 


Sent from my iPad using Tapatalk


----------



## mayhem85

I've just fixed mine for 5years at 1.94% wasn't sure of the best option due to Brexit so I've gone on the cautious side of things


----------



## slineclean

mayhem85 said:


> I've just fixed mine for 5years at 1.94% wasn't sure of the best option due to Brexit so I've gone on the cautious side of things


Yes Brexit was in our thoughts too.


----------



## LeeH

5 years would be prudent. They’re only going one direction for the foreseeable. 


Sent from my iPhone using Tapatalk Pro


----------



## mwad

I went for a 10 year fixed at 2.49% about 6 month’s or so ago


----------



## mwad

robertdon777 said:


> I usually do 3 or 5 just because I like fixed costs.
> 
> It's more expensive like this but i'm happy.
> 
> Next one due soon and I'll fix for 10 if the rates are fairly low still as this will see me out of my mortgage.


Exactly the same with me:driver:


----------

