Are you planning to move in the next few years? If yes, don’t fix for more than two or three years. You don’t want to pay early repayment charges just because you fell in love with a house with a bigger garden.
Are you settling down for a while? Maybe starting a family, or just tired of packing boxes? Then a five- or seven-year fix is your jam. It’s the financial equivalent of ordering the same takeaway every Friday—reliable and comforting.
And if you’re retired or near retirement? Ten-year fix all the way. You’ve earned the right to not think about rates while you sip tea and watch the birds.
What about the “savvy” people?
You’ll meet folks who swear by variable rates. They’ll say things like, “I saved 1.5% last year, mate!” Good for them. But they won’t mention the sleepless nights when inflation sneezes.
Should You Fix Your Mortgage for 2, 3, 5 or 10 Years? A Guide to How
I’m not saying don’t be savvy. I’m saying know yourself. If you’re the type who checks the stock market before breakfast, maybe variable is for you. If you’re the type who panics when your Netflix bill goes up by a pound, fix it and forget it.
