2 or 5 year fix mortgage
According to the Bank of England, the annual inflation rate will be 13% in the autumn of 2022. If you are currently in a position to remortgage, it will certainly be better to act sooner rather than later to secure the best fixed-rate deal. The recent rate increases are causing customers to consider fixing their mortgages for 5 years…but is this the right thing to do? 
Consider this scenario – you’re coming towards the end of your current 2- year fixed rate period and everybody seems to be talking about interest rates going up for the foreseeable future, so does this mean fixing for 5 years is the right thing to do? 
What should I choose? 
This all depends on your individual circumstances and because nobody has a crystal ball, it’s impossible to say with certainty what will happen. Inflation is continuing to rise, which will affect interest rates and have a significant impact on the mortgage market. Having said that, fixing your mortgage for a longer period will give you the peace of mind that you rate will remain constant for a while, allowing you to plan your finances and budget for the longer term. You may end up paying a little more for the certainty of knowing that your rate will not increase. At the time of writing the difference between the two and five year fixed deals are quite minimal, meaning the 5 year fixed could be a good option for you. With longer fixed periods you will also save yourself the hassle of remortgaging after a couple of years. 
What if I'm thinking of moving house? 
When looking at the different options, it’s important to consider your future plans, for example, are you considering moving house or re-mortgaging? If so, locking into a longer fixed rate product might not be the best option as most lenders will charge an ERC (Early Repayment Charge) to get out of it, which will have a significant cost – typically up to 5% of the original loan. If it’s likely you will move within the next 5 years, choosing a short-term product might be sensible. 
Who can I speak to? 
Taking it through with a mortgage adviser (also known as a mortgage broker) is highly recommended. If you choose a whole of market mortgage adviser, they will have access to hundred of products and will be able to present the best option for your personal circumstances to ensure a good outcome. 
Lenders’ products are changing on a daily basis so if you are considering getting in touch with a mortgage adviser, don’t delay! 
Call us on 01302 866787 and speak to one of our trusted advisers. 

FCA Disclaimer 

According to our research, the content contained in this article is accurate at the time of writing. 
Infomation on this website is NOT bespoke advice to its audience and therefore does NOT constitute financial advice. 
Readers are encouraged to contact our qualified advisers directly for mortgage and protection advice. 
As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments. 
Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. 
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