Should You Choose a 2 or 5-Year Mortgage Fix in the UK?

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Here at WIS, we talk about all things to do with money, mortgages, and positive money mindset.

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In today’s video, we’ll cover some of the most common mortgage questions people ask us.

1. 2-Year Deal or 5-Year Deal?

Many people ask whether it’s better to go for a 2-year deal or a 5-year deal, especially with the recent changes in the Bank of England base rate.

The answer doesn’t just depend on the base rate — it depends on your circumstances.

If your circumstances are likely to change soon, a 2-year deal may be better.

If your situation is stable for the long term, a 5-year deal may be more suitable.

Remember: Forecasts are just forecasts. The Bank of England could change decisions at any time, so don’t base your choice only on predictions.

2. What Is an Agreement in Principle (AIP)?

An Agreement in Principle (also called Decision in Principle) is when the bank tells you how much you can borrow for a mortgage.

It depends on how truthful and accurate you are with the information you provide.

When speaking to a mortgage broker, answer all questions honestly and accurately to avoid disappointment later.

3. What Other Costs Should You Factor When Buying a Property?

It’s not just the deposit you need to think about. Other costs include:

• Survey fees: Some banks charge, some don’t. You may also want a private survey.
• Solicitor fees
• Moving costs: Transporting your belongings can be expensive.
• Repairs or issues: Boilers, electrics, etc. may need attention when you move in.
• Stamp duty: If you exceed certain thresholds, this tax applies. Many buyers forget this and get surprised at the end.

4. Good News for Renters

Lenders are starting to recognize renters who consistently pay rent on time.

In the future, lenders may take this into account more positively.

This change addresses the common frustration: “I pay more in rent than the mortgage payment — why is it seen as unaffordable?”

5. How Much Can I Borrow if I’m Self-Employed?

For the self-employed:

• Banks look at your track record over 2–3 years.
• They understand ups and downs in income and will assess overall performance.

If your case is unusual, seek a specialist mortgage advisor who knows how to handle self-employed applications.

6. Should I Use a Solicitor Recommended by the Estate Agent or Broker?

It’s up to you which solicitor you use.

Check their track record: reviews on Google, Trustpilot, etc.

Be careful with “free” solicitors — sometimes poor service ends up costing you more later.

7. Is It Easier to Get a Mortgage for an Existing Property or a New Build?

It depends on the lender. Some are more friendly towards new builds, others prefer existing properties.

Issue with new builds: Similar to buying a new car, the value can drop quickly because buyers can get a brand-new property nearby.

However, some lenders have special schemes for new builds.

Builders may also offer incentives that can go towards your deposit, which lenders often view positively.

8. What If I Lose My Job After Getting a Mortgage Offer?

You must inform the bank if your circumstances change before completion.

Failure to disclose could get you into serious trouble.

The bank may withdraw the offer — but this is often in your best interest, as they don’t want to lend if it could cause financial difficulty for you later.

Final Note

These are some of the most common questions we get about mortgages.

Always remember: Your circumstances, honesty, and planning are just as important as interest rates or bank forecasts when it comes to getting the right mortgage.