![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/im-a-mortgage-expert-how-to-choose-between-a-two-or-five-year-fix/&media=https://uknews.evprotec.com/wp-content/uploads/2023/07/crop-17898862.webp&description=HOME LOAN I'm a mortgage expert – how to choose between a two or five year fix HOMEOWNERS and first-time buyers are facing mortgage misery as interest rates soar, leaving them with a big dilemma. Millions on variable-rate mortgages face higher repayments after the Bank of England hiked interest rates again. 1 Broker Nicholas Mendes explains the pros and cons of five and two-year fixes The central bank increased rates from 4.5% in May to 5% in June, the highest in just under 15 years since September 2008. And earlier this week, the average interest rate on a five-year fixed rate mortgage ticked above 6% for the first time this year. Borrowers on fixed-rate mortgages have been cushioned from the immediate impact of interest rate rises so far - because rates don't change within a fixed deal's term. But when these homeowners come to remortgage, they will face a shock with higher repayments as they'll be forced to take out fixed deals with much higher rates. Both the average two-year and five-year fixes are now above 6%, according to MoneyFacts. Plus, some mortgage brokers fear rates could even hit 7% before the summer is over. We spoke to Nicholas Mendes, from mortgage advisors John Charcoal to help understand how long you should fix for. Which fixed mortgage term is best for me right now? Nicholas said that how long you fix for depends entirely on your financial circumstances and expectations. He said: "Two-year fixed rates are very popular, and there are many on the market. "They offer stability for people with no immediate plans to move home. "But you may want a five-year fix if you intended on staying in your property for the medium to long term, but are open to, or expect your situation to change later on. "It provides stability without asking you to think too far in advance." Nicholas said it's always best to speak with a mortgage broker who can assess your circumstances to make sure you get the best deal that fits your needs. Why should I consider a five-year fix){kind=link}
HOMEOWNERS and first-time buyers are facing mortgage misery as interest rates soar, leaving them with a big dilemma.
Millions on variable-rate mortgages face higher repayments after the Bank of England hiked interest rates again.
The central bank increased rates from 4.5% in May to 5% in June, the highest in just under 15 years since September 2008.
And earlier this week, the average interest rate on a five-year fixed rate mortgage ticked above 6% for the first time this year.
Borrowers on fixed-rate mortgages have been cushioned from the immediate impact of interest rate rises so far – because rates don’t change within a fixed deal’s term.