Is Longer better than shorter now?

halfpint90

worried_jim wrote: »

piece of mind for 10 years- A good place to be.

piece of mind is ok, but to know that you are paying more than you need be is quite sickening.

we fixed our rate 2 years ago for 10years, which seemed a great idea at the time as the rates had been going up and up, now they are significantly lower!!

everytime i seem to look at the news they are saying how low mortgage payments are etc etc.... they seem to forget that not everyones payments have dropped.

before i get shot down for commenting, i know it was our choice to fix for that long, and we could buy our way out of this rate, but it took us a year to get our first mortgage and i don't think i could go throught the agro again trying to swap somewhere else, so think we just gonna stay put, and we still know where we are for another 8 years, but i think its only natural to wish we were saving the extra money that we're paying in interest

MORPH3US

halfpint90 wrote: »

we fixed our rate 2 years ago for 10years, which seemed a great idea at the time as the rates had been going up and up, now they are significantly lower!!

The difference there though is the "2 years ago" bit...

If I was the OP, I would be very tempted to fix for 10 years... (assuming you can overpay a decent amount and then you could be all paid off in 5 - 7 years on such a small amount.

The BoE base rate is very low and yet the OP's SVR is 4.00%

Therefore 4.89% is not that much higher to get a long fix...

IMHO the BOE base rate will stay as it is for a while now, maybe drop another 0.5% but in the medium term it is only going to go one way.

Grz.26

The last drop in rates from the BoE didnt affect RBS. They quoted; "we have to look after savers interest". Hmmm - This makes me feel they will not drop there SVR any further. Takes the micky really as 4% is one of highest out of most lenders I think, and us the public have bailed them out.

I have since phoned up RBS on the basis of comments here, (So thankyou for your advice) and reserved this rate, I have 14 days for paperwork to come, sign, and send off.

Kind Regards

Richard.

Redbedhead

Personally I would go for the 5 year fix. In historic terms a rate of 4.19% is a fantastic rate and I think for the security of knowing your payments for 5 years, I would be going for that. In fact it is the sort of deal I am looking for at the moment.

Gorgeous_George

I'm in the 10-year fix camp.

Go for it.

GG

uzubairu

halfpint90 wrote: »

piece of mind is ok, but to know that you are paying more than you need be is quite sickening.

we fixed our rate 2 years ago for 10years, which seemed a great idea at the time as the rates had been going up and up, now they are significantly lower!!

everytime i seem to look at the news they are saying how low mortgage payments are etc etc.... they seem to forget that not everyones payments have dropped.

before i get shot down for commenting, i know it was our choice to fix for that long, and we could buy our way out of this rate, but it took us a year to get our first mortgage and i don't think i could go throught the agro again trying to swap somewhere else, so think we just gonna stay put, and we still know where we are for another 8 years, but i think its only natural to wish we were saving the extra money that we're paying in interest

You don't chose a fixed rate product because you want the current cheapest rate.
If you wanted that choice, you would have chosen a tracker.

We're on a 10 year fixed rate that we took out in July 2006.

Affordable monthly payments was our main priority and with that comes the ability to budget more accurately.
Payrises and household savings have gone into overpaying the mortgage, so we will pay less interest in the long term.