Should I Fix My Mortgage For 2 Or 5 Years

We specialise in Mortgage Advice for Subcontractors paid via the Construction Industry Scheme (CIS)

Your home may be repossessed if you do not keep up repayments on your mortgage.

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Should I fix my mortgage for 2 or 5 years

This article describes some of the important decisions that CIS Subcontractors need to make on there mortgage.

The questions we get asked by lots of our sub contractors is whether the mortgage should be fixed for the short or longer term. This is quite a difficult question to answer especially in light of the UK financial uncertainty as under the Brexit plan there is no current deal yet with the rest of the Eurozone.

It is important to note that we cannot advise CIS subcontractors of the right mortgage – our contractor mortgage specialist will highlight the pros and cons of each option.

For a 2 year fixed rate, these are always a mortgage lenders lowest possible rates and a good way of making the greatest monthly saving.  However the saving is short lived – 24 months passes by quickly and not only are there potentially more costs involved for switching your mortgage every 2 years – there is also the possibility that in a post Brexit UK, subcontractors will be paying higher interest rates.

On the other hand, a 5 year fixed rate mortgage provides longer term piece of mind there are drawbacks to this option. Longer term fixed rates are typically set at a higher rates whilst mortgage lenders hedge their bets. However if it is affordable, then it should be a serious consideration to take whilst riding out the economic storm and allow time for the dust to settle. Again, another drawback that CIS contractors may have on this mortgage option is that early repayment penalties do last for 5 years. SO if you are planning to pay off a big lump sum, or even the whole mortgage during the next 5 years, then perhaps this is not the mortgage for you.

The best thing we can say right now is to chat to our CIS Contractor mortgage advisors now. They will compare all the options available to you on the mortgage market. Call 01376 808200 or email

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If you’re reading this as a Construction Industry Scheme (CIS) contractor, then you or your partner are probably struggling to find a mortgage right now. We can help.

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