How long should I fix my mortgage for?

So, thats the question. My current deal expires in June and I aim to stay with my current bank, Santander, and essentially the same mortgage. Standard repayment fixed for a term of either 2, 3, 5 or 7 years.

Based on speculation about increase in interest rates, brexit next year and all that what is better? Bear in mind its possible to keep my current mortgage and move house without penalty. Which I do aim to do in the next year or so.

Current interest rate ending in June = 2.09%
2 Year Fixed = 1.99%
3 Year Fixed = 2.29%
5 Year Fixed = 2.39%
7 Year Fixed = 2.69%

I'm thinking the 5 year deal, despite usually always going for 2 year deals to cover my arse.


DJ OD

How long do you have left on it? I always used to do two years and then see what was about, flopping between Santander and Nationwide.

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Originally Posted by BertRoot

How long do you have left on it? I always used to do two years and then see what was about, flopping between Santander and Nationwide.

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22 years mate. I’d normally do 2 as well and keep reassessing it. But this Brexit fiasco worries me...


DJ OD

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Originally Posted by DJ Overdose

22 years mate. I’d normally do 2 as well and keep reassessing it. But this Brexit fiasco worries me...

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It was democratic you know. Not sure how best to play it matey in all honesty and my IFA mate is away.

Mines is due up July and similar term. Think ive made my mind up for a 5 year fix instead of the usual 2. Just feel within that period that rates will be higher than the 2.4% for a fair period of time

My current fix is coming to an end too and I bottled it and have selected a 5Y fix at 1.9x% with First Direct. We've got 12 years left on ours with an LTV of about 50%.

Just remember if you decide to leave the 5 years early, almost all lenders will charge to do this. So five years, really is fice years.

Pretty sure I am going for the 5 year. And although, yes its 5 years and you pay penalties for early redemption, I can transfer it to another property if I move. I've had many mortgages with Abbey (Santander) and banked with them my whole life.


DJ OD

rates are not likely to get any lower than now (or when they were 0.25% boe base rate lower), so I go for 5 or even 7 years.

I agree, with the market uncertainty it is likely to go up, and i cant see them much or any getting lower than they are today

I went with 5 years last year at 1.84% (I think) with Santander, I figured that rates are unlikely to fall further but much more likely to rise. Unless anything drastically changes in my area or with work then I am happy where I am to so no problems there either.

I'd aim for a 5 year but would always look for an offset where possible as long as the rates are too different - First Direct always used to be the same. The interest saving far outweighs any return you'll get on a savings accounts.