10 year fixed rate. Is it worth it.

headmonkey

Hello.
My partner and I have just come out of a 2 year deal with the Halifax fixed at 5.85%.
Of course now that we are on Halifax's standard variable the rate is a lot lower at 4.50%.
However we have now been offered a 10 year fixed rate by C&G at either 4.99% with a buy in of £995.00 or at 5.25% with no buy in.
The outstanding amount of our mortgage is around £55000.00.
This is the first time we have ever heard of a 10 year fixed rate deal and are trying to weigh up the pros and cons of such a deal.
We would be grateful to anyone who has an opinion on such deals and weather or not you think its worth fixing for such a long time. Opinions on 2 or 5 year deals would also be gratefully recieved.

Thank you.

shorehambeach

headmonkey

How many years have you go to run on the mortgage ?

MrMicawber_2

The reality is that no-one has a clue about interest rates long term, but 4.99% or 5.25% over such a long term doesn't look too bad - and maybe the days of the really cheap deals are over.

A big benefit of a fixed rate is, of course, that you have the security of knowing exactly what you are paying.

I'd be tempted, but I would be more tempted by a good 5 year deal.

sdooley

For a 10 year deal I would ask if it is portable and if not, whether I might want to move in that time.

headmonkey

shorehambeach: We have 22 years lefon our mortgage.
sdooley: Yes it is portable. vbmenu_register("postmenu_18142125", true);
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foreversummer

Then I would be very tempted to go for it. What is the exit penalty if anything completely unexpected happened in your lives, and are you allowed to make overpayments?

Foreversummer

Cozworth806

That deal is the one I am likely to go for but at a rate of 5.29% with £995 app fee up to 75% LTV, (4.99% is upto 60% LTV)
Frankly the certainty of rates over the next 10 years is a bonus that I think is worth paying for over and above trackers.

10% overpayments per year

codheadling

10 year fixed rate. Is it worth it.
our current fix is up on 31/12/2009,and i hope,no pray,i can fix for 10 years at anywhere near 5%, i sure aint going to wait and worry about the next "unforseen"global financial disaster to be thrust upon us.

FireworkCrazy

I would be tempted to get the 10 year deal, If you speak to an economist many are predicting a sharp rise in ir in the next few years.

Ask yourself this question.

Interest rates are NOT going to go down, well not the rate that the banks lend to us and they've only got to go up 2% for the variable and trackers to be back at 4.99% again. Do you really think that interest rates will stay at less than 3.5% for the next 10 years!

The banks and the country has got to get all this money that they are borrowing back from somewhere.

uzubairu

We fixed for 10 years with the Nationwide 2.5 years ago at 4.79%.

With the certainty of knowing our monthly payments, we have been able to channel extra income (pay rises and household savings) into overpaying the mortgage by standing order and reducing the term.

We don't intend to move in that period, but our Nationwide mortgage is very flexible and customer friendly. We can also claim back the overpayments easily.

shorehambeach

headmonkey

The 10 year deal seems pretty good whether you add the fee or not...

341.52 is roughly you current payment (if its a repayment mortgage)

if you can afford it then you could take up the fix rate of 4.99 and keep the payments the same - it will chop about 3 years off your payments (so 19 year term rather than 22)

Long term rates cannot keep coming down so they will go up at some point. Personally i would rather know that i was losing out perhaps short term knowing that if rates rocket up I am protected.

good luck