Lloyds Tsb 10 Year Fixed Rate @ 4.99%

house_mum

Anyone got any views on whether they think fixed 10 year rates will go lower? The Lloyds/C&G 4.99% (for LTVs under 60%) has been the same for the last 2 rate cuts. We have varying "bits" of mortgage due to repay in 14 - 25 years due to transporting existing mortgages when we moved - if we put the whole lot on 15 years, fixing for 10 of those, we'll be a couple of hundred pounds a month better off, though could be 6k worse off overall if the mortgage goes to full term based on current payments/rates (though intend to use the extra per month to make overpayments, can make up to 10% per year reductions with no fees)

Another half percent would make it a "no-brainer" but I'm worried that if we hold on too long the banks will stop offering these long term fixes.

andyyorks

The Post Office have a 5 year fix @ 4.74% 75% LTV, no 10 year fixes available but a step in the right direction for those of us who are looking for a decent long term fix. Fees don't seem too bad in today's climate as well but I've not really studied the details carefully yet.

I've an offer from C & G at the minute but, like many others I presume, I'm just waiting for a couple of months to see if they improve their deals.

Andy

scotty1971

britannia seem to be offering good deals on ten year fixed,i have 13 years and only £26000 to go,so finding a deal without fees are really important to me,britannia looks good

itsakidsworld

I think fixed rates at under 5% are a good choice. It may appear slightly high at the moment in relation to base rates but look at this:

When rates were around 5% or above there were offers of tracker rates at 0.49% above base rate. As base rates fell, the tracker rates all increased slightly. Now as of today a good base rate tracker is 1.99% above base rate- so a current rate of 3.49%, whilst many are over 2.3% above base rate.

The base rates look likely to fall again and may even go to 0.25% as some predict. What this does is allow the banks to increase their margins above base rates, so in effect the long term strategy can be a disaster for new or re-mortgage clients right now.

Rates start to go back up and it is not long before a 4.99% rate looks very attractive indeed!! If you require peace of mind take a 10 year fixed rate, put the mortgage to bed and enjoy your life!!

I hope that my comments help you to understand the current climate we are in.

sarahs999

C&G were offering a seven year fix at 4.82 the other day (I am remortgaging too). YOu needed 40% ltv I think. But anything under 5% for ten years is great.

Walaboobah

I think you'll be lucky to get a much better deal than that - I'm one of the lucky ones (for the moment) on a lifetime tracker with Barclays and my current rate is 2.25% but I'm currently overpaying by about £200 a month and will keep doing so as long as I can afford to.

Obviously the rates won't stay as low as this forever but as long as they don't go much higher than 5% I'm happy but to get peace of mind from a rate of below 5% for 10 years is something to be snapped up as far as I am concerned :T

tbrain

If you're currently with another lender and want to move over to C&G, apparently they will pass on any interest rate cuts if a product was to change whilst you're going through the process of moving from your existing lender to C&G. e.g. if you sign on the dotted line today and the rate drops to 4.79% in two weeks, you will receive the latter rate...

house_mum

Thanks for that - tbrain, I have now applied and C&G said just that - if the rate goes down before I draw down, I can take the new rate. Job done!

uzubairu

dimbo61 wrote: »

iannj thats a damm good plan to me and I would have jumped at that 3 years ago if offered to me.
Can you afford to reduce your term to 10 years and this would be the last mortgage you might ever need !!
Or keep the term the same and overpay each month to be MF in 10 !!

That's our plan with our 10 year fix with Nationwide.
We've just reduced the term again and with overpayments should be MF when fixed rate ends.

We wanted this to be our last mortgage.