I'm not sure if this is the right place to ask but I need to remortgage my house as I'm coming to the end of the term. I'm unsure whether to pick a 2, 3 or 5 year deal. The rates aren't too different on the products ive looked at so far. Does anyone know which way the markets are likely to go. Basically am I better off fixing for longer?
There is a thread about house prices, buying and selling that may have people who have recently sorted or are sorting mortgages:
As you were....
tattle.life
I think it’s probably difficult to tell so soon into a new government what will happen to house prices in line with changes to the economic policy. We know there will be tax changes although targeted initially on capital gains, inheritance tax etc. If VAT is added to private school fees then if you’re in a catchment area for a good/outstanding state school your price may go up.
I think you need to understand what is most important for you - if you want the security of knowing what you’re paying for a longer period with no surprises then the 5 year is the best option, you may get a slightly worse rate but you can plan finances better. 2/3 year will be a better rate but you need to factor in the costs associated with organising the mortgage - this will double if you go for 2 years over 5.
If you think your personal finances will be in a better place after 2-3 years that may also be a factor.