There are 2-year, 5 year and even 10 year fixed with options in between. There are many considerations, with a variable rate mortgage your monthly payment may change with the movement of the bank of England base rate but with a fixed rate mortgage your payment will be fixed for a period of time.
Typically, if you do not view this purchase as your “forever home”, you may want to consider a short term fixed mortgage over 2 years meaning your payments will be fixed for 2 years after which point if you move or change mortgages, you can then quit the mortgage with no penalty.
If you chose a 5-year deal, you will be fixed into the mortgage for 5 years meaning that you would be charged an early repayment charge if you tried to pay off the mortgage within that 5 years, hence more appealing if you view the purchase as a long term one.
Our expert advisers will talk you through your options and help you to find the best solution.