How long should I fix my mortgage?

A lot of people asking me how long should I fix my mortgage. What is the prediction on interest rate short term and long term? Here are my answer to these questions:

First of all, this is general advice & here is my disclaimer.  The decision of how long to fix your mortgage will depend on your personal financial situation, your risk tolerance, and your long-term plans. Here are some factors to consider when deciding how long to fix your mortgage:

1. Interest rates: Interest rates are the most important factor in deciding how long to fix your mortgage. When interest rates are low, it may be more beneficial to fix your mortgage for a longer term, as you can secure a low rate for a longer period. Conversely, if interest rates are high or expected to rise, a shorter-term fix may be better. At the moment interest rate is increasing or they are at their peak and expected to stay high in the short term.
2. Personal finances: Consider your income, savings, and expenses when deciding how long to fix your mortgage. If you have a stable income and a good savings buffer, you may be comfortable fixing your mortgage for a longer term. If you have less savings and more uncertainty about your income, a shorter-term fix may be better. I suggest saving as much as possible and paying your debt as fast as possible to save on the interest you are paying.
3. Long-term plans: Consider your long-term plans, such as when you plan to move house, retire, or pay off other debts. If you plan to move house or pay off your mortgage early, a shorter-term fix may be better. If you plan to stay in your house for a longer time, a longer-term fix may be more appropriate.
4. Risk tolerance: If you are risk-averse, you may prefer to fix your mortgage for a longer term to provide more certainty and stability. If you are comfortable with some uncertainty and want to take advantage of potential interest rate decreases, a shorter-term fix may be more appropriate.
5. Manage Risk: I usually suggest dividing the mortgage into 3~4 parts and fixing each part in different lengths. This is like you don’t put all your eggs in one basket. You get benefits from short-term and long-term fixing.  

Ultimately, the decision of how long to fix your mortgage will depend on your individual circumstances and priorities. It may be helpful to consult with a financial advisor or property coach to help you make the best decision for your situation.