New mortgage deal - fix two, three or five years?

[Diamond Hell]

New mortgage deal.  All are more than under 0.1% lower than the standard variable rate, so it needs to be fixed.

fix two years?

Fix three years, at an additional cost of £20 per month?

Fix five years at an additional cost of £30 per month?

The latter two give me the potential benefit that today's rates won't be around to fix at in two years time, so by fixing longer I will save at least as much over the term of the fix.  Because the rates are so low at the moment I pay more to fix longer, because I'm insuring the risk that rates will go up over a longer term.

The alternative view is fix for two years because in two years time there will be another great two year deal so I save EVEN more over at least four years.

Come on then money whizzes.  What would you do?

Please not there is not Andywash option.  He doesn't have a mortgage as he owns outright and is destitute.

[Mitching]

Fix tow

[Agreeable Slick]

Depends on equity level at the moment. Will you be able to over pay a lot in a short time to fix at a slightly better deal in two years? Or maintain current payments and just happy to sit for the duration of the mortgage?

[JC]

oh i am dreading buying a house 

[R32UK]

if you follow the trend i.e. the way rates usually go after a recession. then defo fix for 5yrs  

[stfc_gti]

be carefull with long term mortgages if you think you might move home before its finished, a mate of mine tried moving house before his current mortgage expired and he had to pay a massive fee.

[mcgee9t2]

Fix tow

i was gonna say that

[Martz]

I am no expert but think that the safe bet is fixed for 5 years, but only if you can secure a decent rate. We fixed ours just before it all went poop and are pretty happy with it still. Not sure what deals are on at the moment but I am sure they are still out there.

[tomp]

I went onto a variable rate when my deal came to an end. I figure I can always fix later if need be.

Have a look here..

http://www.thisismoney.co.uk/money/news/article-1607881/Interest-rates-News-predictions.html

Really depends on the figures involved, if its a large mortgage and you can comfortably afford the repayments then fix it for five years knowing that for this amount of time you have the security of knowing your monthly payment for a relatively small amount, £7.50 a week.

Or do what I did and gamble on rates staying low for the next few years, which is the general consensus anyway... You may have been offered a low rate fix, as if rate predictions are to be believed, they are gonna drop further still....

[Luke1981]

Rumour on the financial markets suggests the bank of England base rate is going to drop to 0.25%! What is your lenders variable rate?
They also reckon it will be 2017 till the rates start increasing slightly! I have been on the Nationwides variable rate for nearly two yrs now since my deal ended. I pay 2% above the base rate.