10 yr fixed rate-what do you think?worth it?

froggy27_2

I just need advice/different opinions.. for my remortgage.. i've got an agreement to sign and send back for a 5yr fixed at 4.69%.. but i also noticed that they have a 10 yrs at 4.89% and was wondering if i should just go for it and know for the next 10yrs my rate... but is it a gamble? will it go much lower?
I know we all want a crystal ball but expert opinions? i only have this week to decide...
As a customer i have no extra fee on either rate..
Thanks a lot..

spuds_2

General consensus seems to be that rates will be low for a couple of years yet. So it's not really worth going on a fix for say 2 years if there is a large fee to pay. However, you are getting a good rate long term and for lots of people the security of a fixed monthly payment is important. I assume it is C and G or Britannia. I would check if there is an option to overpay a bit if you wish.

4.89% for 10 years is cheap money by my reckoning, though in the Times at the weekend one of the mortgage advisors was saying that he was waiting for fixed rates to drop a little further before he switched. You may want to go on the SVR and see what's available in a couple of months. HTH.

Robert_Sterling_3

We can only guess.

bryanb

froggy27 wrote: »

I just need advice/different opinions.. for my remortgage.. i've got an agreement to sign and send back for a 5yr fixed at 4.69%.. but i also noticed that they have a 10 yrs at 4.89% and was wondering if i should just go for it and know for the next 10yrs my rate... but is it a gamble? will it go much lower?
I know we all want a crystal ball but expert opinions? i only have this week to decide...
As a customer i have no extra fee on either rate..
Thanks a lot..

I Don't think the base rate will drop far below zero, although that doesn't control mortgage rates it must have some bearing on them. I'd go for the 10yr.

getmore4less

I did the calcs for a 5y fix against a variable.

If rates stay low for two years then the rate on the variable for the next 3 had to go over 7% for the fix to have been the better deal.

Overpayments(pay the same as the fix) on the lower rate make a big difference to the amount outstanding so mitigate the rising rates a lot.

this was 2.79 against 4.99(fix).

froggy27_2

thanks for your answers...always good to have others' opinions...
as much as i'm good at saving and shopping around on smaller things..mortgages always seem to go way over my head...

froggy27_2

After huming a lot about going 10yrs... i've checked my BS and they've changed all their fixed rates again (3rd times since thread).. all are up and the 10yr has now gone.. so i sent quickly my initial proposal for 5yr on the agreed rate of 4.69%...which has now gone to 5.49%...
I know it's my fault .. bt i'm a bit annoyed about not being quick enough to take decision on the 10yr fixed...OH WELL..................:o

lowis

i just spoke to an advisor at Nationwide and he told me that they are putting thier fixed rates up by half a percent tomorrow

latecomer

froggy27 wrote: »

After huming a lot about going 10yrs... i've checked my BS and they've changed all their fixed rates again (3rd times since thread).. all are up and the 10yr has now gone.. so i sent quickly my initial proposal for 5yr on the agreed rate of 4.69%...which has now gone to 5.49%...
I know it's my fault .. bt i'm a bit annoyed about not being quick enough to take decision on the 10yr fixed...OH WELL..................:o

Have you checked whether your application was received before the change was made, they might honour the original rate.

gitch01

froggy27 i think you are right about a long term fixed but i suppose it depends on the situation

i'm with brittania and my fixed 5.69% ends in June.
i have applied for the 10 year fixed

the figures are this

Fee payable £549
Rate for 10 years 4.69%
mortgage amount £37261.72
monthly repayment would be £332.04
able to over pay every month by £499 ( yeah right i wish)
term left 12years 4 months

i think that i may be able to pay a little extra off every month. i'll probably round it up to £350 a month.

i have been arguing with my mates and they keep saying i should get a lower rate with someone else. but as i said the arrangments fees are double what this one is and only for two years

so am i right or would someone care to point out the error of my ways

any comments welcome