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i think it is unlikely that interest rates will fall from where they are now (historic lows?). i would therefore go for the 5yr
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A first time buyer mortgage might be at a terrible rate especially you have a high LTV. So even if the base rate goes up you may still be able to get a cheaper mortgage in two years' time when L will be down and the estimated V should be up.
It all depends on the actual numbers though.
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As others say, it depends.
If you're buying with a fairly small deposit and high LTV (10% deposit say) then, if the property value has gone up in two years, you may get into a more favourable LTV band and still get a lower rate even if rates overall have gone up.If you're buying with a high deposit then that is less likely to be an issue.
It also depends on your appetite for risk and how financially resilient you are. Do you want that certainty of knowing what you're paying for the next 5 years or can you take the risk that it may be higher and may be lower.
Or is there the possibility of your circumstances changing and wanting to move house again before 5 years is up?
There's no definitive answer, you need to think about the pros and cons and your personal circumstances.
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In addition to all the other advice, is there any chance you might want to move in two to five years? Life can change significantly in 5 years, children, saving money, inheritance etc
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@gav
Hi,
I'm hopefully buying a place with my partner in a couple months, first time buyers and all that. Already got a 2 year fixed mortgage lined up, but now wondering if doing a five year fix would be better given the risk of interest rates rising. Is anyone in a similar position having the same dilemma?