10 year fixed - i am right.....aren't i????

gitch01

We are with Britannia
we owe £38261.72 on the mortgage. my 5 year fixed rate (5.49%) ends in June.
we will have 12 years and 4 month left on the mortgage.
Britannia SVR is 4.74%
i can apply now as an existing customer for their 10 year fixed at 4.69%.
arrangement fee £549(Rather high if you ask me for existing customers).

monthly repayment fee for the 10 years would be £340.95

surely rates cant stay as low as they are for longer than the next year or 18 months

with our amount oustanding i cant see that it would pay us to switch to someone
else after paying arrangment fees etc just for a year or maybe two

in 3 years time i reckon that 4.69% will look like a good rate

any one fancy making me change my mind

thanks

Rikki

If I could fix my mortgage till the end of term I would. Purely for knowing exactly what I am paying each month. The interest rate doesn't really affect my thinking.

Euphoria1z

im going to fix my mortgage for 10 yrs when my current one runs out in july 09. as i doubt it ill get a chance like this in a few yrs time.

HangTime

Depending on what your finances are like you might want to see if you can get a better rate on a shorter term fix and try to pay off the mortgage (or the bulk of it) in that period. Obviously I don't know your personal finances so this may be an option, but possibly something to consider if you can afford.

HSBC are doing a 2.99% fix for 2 years for the same fee (£599). Max 60% LTV but I'm guessing you may qualify as your outstanding balance is quite low. To be honest though that's quite a different product from the one you are considering, and it can't offer you the security of a 10 year fix. I did briefly look to see if cheap 5yr deals were available but didn't come up with much.

opinions4u

gitch01 wrote: »

We are with Britannia
we owe £38261.72 on the mortgage. my 5 year fixed rate (5.49%) ends in June.
we will have 12 years and 4 month left on the mortgage.
Britannia SVR is 4.74%
i can apply now as an existing customer for their 10 year fixed at 4.69%.
arrangement fee £549(Rather high if you ask me for existing customers).

But if they'd said it's 4.84% with no fee it would cost you roughly the same over the term. Don't let the fee put you off. Incorporate it in to the overall cost and then see if you think it's fair.

surely rates cant stay as low as they are for longer than the next year or 18 months

They did in Japan. For over a decade.

with our amount oustanding i cant see that it would pay us to switch to someone else after paying arrangment fees etc just for a year or maybe two

I agree.

in 3 years time i reckon that 4.69% will look like a good rate

I agree. But refer you to the Japanese disclaimer above!

any one fancy making me change my mind

Gut reaction is to bite their hands off.

paulfaz

I'd snap their hands off and overpay so you are mortgage free in 10 years (if you can afford it).

dwsjarcmcd

Another vote for not trying to make you change your mind!

Gorgeous_George

Remember, you get a share of the profits with Britannia. Not a lot but could be worth £5 per month based on your mortgage.

Another option would be to overpay. Fixed rates may be trimmed a little but 4.69% looks good to me.

At 4.69% and adding the arrangement fee to your mortgage, I calculate a monthly repyment of £345.85 for ten years. After ten years, you will owe £7,719.07.

If you took the risk and waited for a 3.99% rate, your monthly payments would only be £13.39 per month (about a pint of beer per week) lower and you would owe £7,482.95 after ten years.

GG

TuftyMatt

If I were in your shoes I would hold on for a week or so and let last months rate cut be passed on.

While I do not expect the BOE to cut rates again in March I would expect another fall of .5% in April or May so 10 year deals have more room to be lowered I think.

dimbo61

Take the best 10 year deal you can find and reduce the term of your mortgage to 10 years.
Find out from your lender how much this would cost or use "whatsthecost "to get the figures.
The 10 year fix at 4.69% for £38,261.72 would cost £400 a month and mean paying nearly £10,000 in interest over the 10 years.
You would be mortgage free in 10 years and have no more mortgage fees,arrangement fees, survey fees, legal fees to pay.
I would take the 10 year deal and overpay ( if allowed ) when you have the spare money.
Dont know your age but the sooner you are mortgage free the sooner you can save for retirement, work part time, cruise round the world and not have a mortgage debt round your neck ( just my opinion )

Robert_Sterling_3

gitch01 wrote: »

any one fancy making me change my mind
thanks

Not me....................