10 year fixed rate. Is it worth it.

headmonkey

Thank you all for your input.
You have all given the both of us some food for thought. Personally I think that I'd like to buy in for the the 10 year deal but my partner feels nervous about that amount of time and is thinking more of a 5 year fixed.
Theres going to be a lot of umming and aaring before we decide I think.
Thankyou.

Vertigo1

Britannia are currently offering 4.49% fixed for 5 years or 4.69% fixed for 10 years.

Both of these offers look very tempting to me, particularly the former. Any opinions?

gitch01

we are with britannia and my 5 year fixed ends in june.
we've just cashed in the rubbish endownment.(£9500).
we will pay this off the mortgage and be left with £36925 which we will change to repayment. in June we will have 12 years left on our mortgage
we are going to go on the 10 year fixed at 4.69%.
hopefully we will be able to make overpayments and get it all paid off by the time the
10 year period comes to an end.
i cant apply until february 10th so if interest rates come down again those figures may change

Robert_Sterling_3

Swings & Roundabouts. There is not a one answer fits all situations. :easter: :EasterBun

Phlip_corter

Here, i would like to suggest on 10 year fixed rate loans that Long-term fixed rate loans suit borrowers who are looking for security.But fixing for ten years is a huge commitment. While it is fine if you know you will be staying in your existing home for at least a decade, if there is any chance you might want to move it is probably unwise to fix for so long.

ixwood

I fixed for 10 years last year and it is great knowing that's as long as you can find £x pm, nothing can touch you.

I agree with being sure you're happy to stay put.

And 10 years is a nice target for paying it off quick too!

ixwood

Rates are 18% in Iceland now. I don't think it's out of the realms of possibility that we could be in the same boat at some point. A lot off people on trackers and SVR would be hit very hard if it happened.

I think fixing at a decentish rate would be a sensible, prudent move.

uzubairu

ixwood wrote: »

I fixed for 10 years last year and it is great knowing that's as long as you can find £x pm, nothing can touch you.

I agree with being sure you're happy to stay put.

And 10 years is a nice target for paying it off quick too!

It certainly is.

With 7.5 years left to go, we're hoping to pay off the mortgage by the time the fixed rate ends.

samsuka

Headmonkey,

Don't fix yet. I agree a 10-year is a great idea, but you will get better fixes in the late summer. Its common knowledge enough that BoE rates are set to come down further, probably to 0.5% by June. With the Halifax you will probably see a few more cuts at least, even if you don't see all of it, so go from 4.5% to more like 4% at least.

Swap rates and LIBOR are also falling steadily, and they only recently cut the capital requirements for banks, meaning that they will have the room to offer better deals soon.

And as long as the SVR is below the fix level you are making money. The difference between the base rate and average mortgage rates has never been higher, and the differential is set to narrow.

I need to re-mortgage and will be doing so probably in August/September, when i expect to be able to get a 10-year fix for 3% - 3.5%.

The only way mortgage rates can go at the moment is down, so hold on

Ta

S

plzhelpmesave!

we remortgaged this time last year on a 10 year fix with West Brom @ 5.39%. Took it and at the time mortgage advisers were telling us to grab is asap as it was a good offer.

The security factor for us was the main thing as just hubby working at the time while i have the kids. Its reassuring to know what our outgoings will be rather than worrying about whether or not we'll be able to cope with higher mortgage payments. Most seem to be portable and have some room for overpayments to so as long as you have that bit of flexibility then you should be fine.

We also liked the rounded figure of 10 - hoping that when i go back to work properly then we can start making overpayments and get the mortgage down as much as possible in the 10 years.

good luck whatever you decide, it a very personal decision to your circumstances. May be worth rining a few free mortgage advisers and getting their opinions on the rates you're looking at.