How long should you fix your mortgage for?

You have found your dream home, whether you are moving up the property ladder or taking that milestone first-step to homeownership, you are excited. Having worked hard saving up for a deposit you are ready to start the next chapter in your life, but there’s plenty to consider about your mortgage, and it can be confusing!

One of the key things to consider, if a fixed rate mortgage is your preference, is how long should you fix it for? 2-year, 5-year, or possibly 10-year? How do you know which option is right for you and your personal circumstances? The main dilemma with knowing how long to fix your mortgage for is anticipating how long interest rates will continue to rise and when they will start to come down again? The danger is that if you get ‘stuck’ in a long-term fixed rate which becomes higher than variable rate you will be paying higher interest rate than you need to. Conversely if interest rates are still rising when the fixed term nears its end you will wish you had chosen a longer fixed rate.

Unfortunately no one has a crystal ball and can predict what future interest rates will do and how much longer they will keep going up before they come back down again, however using a mortgage adviser will give you comfort in the knowledge that you’ll get the mortgage deal best suited to your needs.

How do I know how long to fix my mortgage for?

There are a whole range of factors that you need to consider when deciding how long you would like to fix your mortgage for.

Different rates on different length fixes are important to consider as they will have a direct impact on your monthly mortgage repayments.

Also, if you’re a first-time buyer, home mover or someone who’s fixed rate mortgage is about to end with only a few years left on your entire mortgage term, your circumstances are going to be different, and it’s hard to know what option is most suited to you.

Whatever your situation, a mortgage adviser will be able to consider a range of different products from a whole host of different mortgage lenders and find the deal that’s right for you.

If you’d like to discuss how long you should fix your mortgage for, contact Kay or Nicki today! 

This article doesn’t constitute financial advice and advice should always be sought before making any mortgage decisions.