Fixed Rate Mortgages: 2-Year vs. 5-Year – Which Is Right for You? 📈

A big question being discussed at the moment is whether homeowners should opt for two years or the five years when it comes to fixed rate mortgages. Experts say both have can be beneficial in different ways, so let's take a look at the situation.<br /><br />When it comes to remortgaging time, it can be daunting trying to figure out what the best decision might be for you, with many of us looking at either a two year or five year fixed mortgage. Heading down the two year route, well, according to Right Move the expectations of the financial markets is <br /><br />that interest rates are either at their peak, or are set to reach it soon. This could mean that in two years time, rates could be lower due to the drop after the peak. The five year deal does lock you in for that five year period regardless if rates fall, but for many, having a clearer picture of their finances for the next five years is preferred. <br /><br />Currently, the five-year fixed rate is roughly half a percent lower than a 2-year fixed rate on average, which could see you paying around £27 less per month for every £100,000 you have left to pay.