How long should I fix my mortgage for?

A lot of customers are asking us how long to fix their mortgage. Should they fix for two years and hope that the Bank of England bring down the Base Rate at the expiry, or should they fix longer term for stability, and peace of mind knowing they can afford it now.

If only we had a crystal ball. No one can predict what will happen, forecasts are currently showing the Base Rate will be higher and remain high for the next 2-3 years. Again, forecasts can change, what I will say is that we have to work with what we know now. Look at your budget now, and what is affordable.

As a rule of thumb, if you are planning on selling in the imminent future, unless you were interested in applying to port your mortgage to a new property (which is subject to application and criteria at that time), then a longer-term fixed rate might not be for you. There are also alternative options to fixing such as a tracker or discounted rate which sometimes also hold lower early repayment charges or evaluate whether it is worth sticking on the current standard variable rate. It is all down to your personal circumstance.

If you have no plans to move, and want to lock in for stability, then the 5-year rates would be a better choice. The 5-year fixed rates are also coming in at better value than a two, or three-year fixed, although there aren't many three-year options at this time.

If you are coming off a low fixed rate in the next 6 months, now is the time to speak to a mortgage broker. I've even had clients that have rates expiring in the next 12 months approaching us for advice. Moving from a rate of c. 1.59% to 5-6% will be a steep increase, with a broker, you can look at your options, how you can make this as affordable as possible.

Please don't leave it too late, rates are changing rapidly, don't let them creep up any further leaving you with higher payments.

For fee free no obligation advice, drop me a message here, or email [email protected] or call/text/WhatsApp on +44 7548 833840

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