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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.
aggi-
There's no definitive answer, you need to think about the pros and cons and your personal circumstances.
This.
We've got 5yr mortgages both times.
Mortgage #1: 5yrs was based on what we expected our life plan would be in terms of having a child - in particular remortgaging on a lower income, and the min time we'd stay in the house. Due to reasons there was only one mortgage provider for us. With the benefit of hindsight a shorter term would have allowed us to move to a lower rate earlier. However, we moved abroad for a bit and in reality it would be impossible to predict that and its timing, so it probably was the correct choice.
Mortgage #2: 5yrs was based on the negligible difference between 2, 3 and 5yrs and 5yrs being so low. However, we made sure there were no porting fees in case we move in the meantime.
hugo7
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?