Deciding a fixed rate term

manicmum_2

Hi

I am new to this and not very experienced with mortgages! Our fixed rate mortgage has just come to an end and we are looking at another fixed rate. We have been advised that a 10 year fixed rate could be a good idea. The Woolwich do a 10yr fixed at 5.69% or a 5yr at 5.79%. Our mortgage is for approx 98000 over 19yrs. We dont know whether its a good idea to be tied in for too long. Any advice? Thanks.

Gangstabird

I have a 10 year fixed rate mortgage at 5% which I took out last year with Nationwide.

We are definitely not moving out of our house unless we are evicted, so it was a good idea for us. Thats what helped me decide. We have all the kids we are going to have and have enough room.

The good thing about our mortgage is that should we be forced to downsize for any reason, it's portable.

I had a 5 year fix before this and lost around 2k over 5 years because rates stayed lower. However, on my current rate I have not lost so far.

Hope this helps.

arkie

Woolwich loans are portable, which means you can take them to another property should you elect to move house. The penalties would only be paid if you reduce your mortgage or pay it off. 10 years at 5.69% is good,

bankersmug

arkie wrote: »

Woolwich loans are portable, which means you can take them to another property should you elect to move house. The penalties would only be paid if you reduce your mortgage or pay it off. 10 years at 5.69% is good,

I've got a 10 year fixed rate at 5.68% and I'm happy with the decision. I'm self employed and over the next few years plan to travel, study, and do one or two things that may mean the income fluctuates. Not having to prove my income every 2 or 3 years saves me the hassle of gathering paperwork from accountants, and product fees, plus insulates me from harsher economic times.
Yes, interest rates could come down too, but historically 5% mortgages are the exception rather than the rule, so I'll happily live with the risk.

That's my position; obviously everyone is different. Just do whatever lets you sleep at night.