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

uzubairu

dimbo61 wrote: »

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 )

Just my opinion too.

gitch01

thanks for everyone replies. i have done the application over the phone today.
we can overpay by £499 per month. not that we could afford that. more like £4.99!!
my current fixed rate doesn't finsh until june and if their fixed rate comes down before then i can simply phone up and go on to whatever that will be.

we have the money to pay the arangement fee up front. should i do that??
by the time time this new deal ends i will be 51. christ where has my life gone :eek:

Robert_Sterling_3

gitch01 wrote: »

where has my life gone :eek:

If you don't know who does.

dimbo61

If you can afford £400 a month then reduce the term to 10 years ( you will be 61 by then !!!!)
If you are not happy with that then pay the £340 a month and set up a standing order to overpay by £60 each month then if things are tight dont overpay that month.
If you have the £549 fee then pay that straight to your lender ( it saves you lots of interest!! )
Dont add it onto the mortgage ( it will cost you a £1000 over 10 years ! )
Try haggling with them and say you cant afford to pay another BIG FEE £549
and see what they say ( if you dont ask you dont get !! )
But dont add it to the mortgage

stuarthouse

From my burnt fingers, once bitten twice shy, long term fixed rates are useful if they are around the 3%.
I have learnt the hard way that 2 yr fixed max 3 yr fixed is best not 5 not 10, unless it is 3% fixed.
Also the redepmtion on 5-10yr are so high.

My basic take is :
In times of interest rates going up due to a healthy economy a fix rate 2 -3 yr is best.
In times of unterest rates going down due to unhealthy economy base rate tracker.



I feel if the BoE kepo a constant of 3% around which everyting else revolved, life would be musch simpler.
In times of so much vaiables, we should have at least one constant.

dwsjarcmcd

gitch01 wrote: »

we have the money to pay the arangement fee up front. should i do that??

Not yet! The reason is that if you pay the fee now they may deem it to be non-transferrable to another product. For now say you want to add the fee, then if the rate drops you can apply for that without having to lose anything. Check with the lender.

Just before completion tell them you want to pay it up front to avoid paying interest (it will mean an amended offer, so don't leave it until the very last minute)

David

uzubairu

stuarthouse wrote: »

From my burnt fingers, once bitten twice shy, long term fixed rates are useful if they are around the 3%.
I have learnt the hard way that 2 yr fixed max 3 yr fixed is best not 5 not 10, unless it is 3% fixed.
Also the redepmtion on 5-10yr are so high.

My basic take is :
In times of interest rates going up due to a healthy economy a fix rate 2 -3 yr is best.
In times of unterest rates going down due to unhealthy economy base rate tracker.



I feel if the BoE kepo a constant of 3% around which everyting else revolved, life would be musch simpler.
In times of so much vaiables, we should have at least one constant.

That's what a fixed rate product is for.

Let me know when you see the 5 & 10 year 3% fixed rate products, I might have paid my mortgage off by then.

stuarthouse

Me2 mate.

I wish there was a 3% fixed 10yr .. i would take it out instantly.

Wish BoE was a constant 3%.

caracal_77

Let me know when you see the 5 & 10 year 3% fixed rate products, I might have paid my mortgage off by then.
/QUOTE]

Me too...:rotfl: :rotfl: :rotfl:

stuarthouse

:T :rolleyes: nice one, i was just saying that unless a long term fixed was 3% its not worth it ...

I was trying to be helpful in my post.