Mortgage fix now, 2 years or 5?

[mjb1]

Just about to take out a new mortgage and I've been offered a two year fix at 1.4% or a five year fix 2.2%. There's an 'arrangement fee' of £995, which is payable whenever I refix. Initially, I decided (on the advise of the IFA who arranged the mortgage) to go for the 2 year fix. Then planned to probably refix for five years when the initial fixed rate comes to an end.

Now having 2nd thoughts about only choosing 2 year fix to start with - could the recently reported inflation push up interest rates quicker than people had been thinking?

[mjb1]

Mortgage is for 130k. LTV just over 50%. What LTV do you have for those rates? I've not been offered any fee free options, broker advised this was the best all round deal available to me.

Pretty sure this one allows overpayments of 10% per year though, sounds like yours is 10% within the fixed rate period?

[mjb1]

Casa1862 said:

With your LTV you should get a better than you've got, who's your lender?

Natwest. Mortgage was agreed three months ago, not sure if rates/offers have changed since. I'm about to exchange on the purchase any day, so not really time to try and find a better offer.