The mortgage debate – 2 year fix versus 5 year fix.

For those considering a fixed rate mortgage the first decision to make is which deal to choose. A shorter term 2 year fix which allows more frequent remortgaging, or a 5 year fix which offers a greater level of security.

Shorter term 2 year fixes come with cheaper rates, at present rates start at 1.48% from the West Brom BS. However with record low rates it is crucial to factor in fees when reviewing affordability. With ultra low rates often the fees charged are high. The West Brom deal for example comes with a £2,499 fee, and this hefty charge affects overall mortgage affordability.

In general 5 year fixed rates are set 1.5% to 2% higher, however the attraction of a longer term 5 year deal is an increased level of financial security. Risk averse borrowers are prepared to accept a higher rate for protection against an interest rate rise.

If you are debating which mortgage term to choose you are recommended to call Deal Direct and speak to a mortgage adviser.

We can make a 'whole of market' mortgage review to compare 2 year fixed rate affordability against 5 year fixed rates. We can help you work out which deal overall is the most competitive and best suited to your needs.

To discuss your mortgaging options speak to Deal Direct, we offer free no-obligation advice. We work solely on your behalf and in your interest and will only recommend the most affordable deal which we believe to be in your best interest.

For an independent 'whole of market' search and a low rate quote call us today on 0800 048 8828.