2-year or 5-year fixed mortgage in the UK?
February 24, 2014 12:02 PM Subscribe
We've received conflicting advice from two mortgage advisers, and I'd like to get some more opinions.
posted by alby to Work & Money (16 answers total) 1 user marked this as a favorite
The first adviser suggested that if we could afford a 5-year fixed mortgage (which we can) then we should go for it because of the increased stability.
The second adviser suggested that a 2-year fixed mortgage would be a better idea. His suggestion was that in two years the interest rate would not have changed very much (if at all) and the price of the house would have gone up. Because we have a 20% deposit our loan-to-value ratio would have gone below 75% and we'd have cheaper options for the renegotiated next "term" of the mortgage.
Your thoughts, Mefi?