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Old 21-05-2018, 06:45 PM   #1
dannygdesigns
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How long to fix Mortgage for ?

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
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Old 21-05-2018, 07:27 PM   #2
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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.
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Old 21-05-2018, 07:34 PM   #3
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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.
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Old 21-05-2018, 08:18 PM   #4
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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
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Old 21-05-2018, 09:08 PM   #5
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depends on ur LTV, by getting a 2 yr one it gives u chance to add value to get a better rate.
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Old 21-05-2018, 09:22 PM   #6
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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.
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Old 21-05-2018, 09:41 PM   #7
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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,
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Old 21-05-2018, 09:51 PM   #8
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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....
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Old 21-05-2018, 10:19 PM   #9
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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.

Last edited by AndyN01; 21-05-2018 at 10:59 PM.
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Old 21-05-2018, 11:00 PM   #10
slineclean
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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

Last edited by slineclean; 22-05-2018 at 10:59 PM.
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