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You can’t know and it’s not worth trying to guess.
The question is whether you value the certainty of knowing your payments will not go up for 5yrs vs the possibility of ‘losing’ a bit if rates drop.
If you’re well within your comfort zone with the payments then could take a punt and hope they drop in 2yrs. If you’d struggle if they go up then maybe fix for longer.
duncs
@ectoplasmosis
We’re applying for a home improvement loan from our existing mortgage provider, and have been offered the following rates:
2 years fixed @ 4.9%
5 years fixed @ 4.74%
Does this sound about right in today’s climate? Which one should we go for? Are rates likely to appreciably drop between 2 and 5 years from now to make the 2-year-fixed deal worth it?
I dread the prospect of having to obsess over this and pore over endless money comparison websites & forums…