longer than 5

the_cow

there has been a lot of talk of 5year fix deals on here but not alot of talk of deals of longer than 5years was just wondering what peoples thoughts are and what are the best deals for longer than 5years

Gazza1964

The best deal I have seen over 5 years is with the Chelsea - a 10 year fix at 4.59% however the minimum loan with Chelsea fixed rates is 60k and it has a £995 fee and doesn't look particularly flexible ( overpayments etc. )

Northern Rock did have a 10 year fix at 5.59% with no fee and is more flexible but if you have a larger mortgage and dont intend to overpay then I would think the Chelsea is better plus I found it difficult to get a response from NR.

Some companies also do a 7 year fix such as the Woolich but they are not particularly competetive in my opinion ( the woolich ).

The Leeds also have a 10 year at 4.75% with fees

I would of preferred to do a 10 year fix and consider the rates to be quite good but due to my total borrowing I have gone for a 5 year fix with A & L at 3.99% with no fees.

How low do you think a 10 year fix can go? Thats all that matters - everybody else is just guessing no matter how informed they think they are. I want a fix because I think interest rates could go anywhere in the next couple of years and I don't mind paying over the odds ( if they remain low ) for that security and peace of mind.

Good luck.

lethal0r

i think right now there are some very good 5 year fixes out there.

to echo the previous poster, I have not seen anything that great for longer than this period.

im going to fix for 5 and then pray the post-recession base rate isnt too high in 2014!

hearts

"and then pray the post-recession base rate isnt too high in 2014!"

Wishful thinking maybe. ;-) (The post recession bit)

mark55man

my view is that rates will be quite a bit higher after 3 years

reasoning: the banks made a big fuss about providing capped products (to protect us - god bless them) where the cap ended after 3 years. classic loan an umbrella until it starts raining technique.

I am looking for 10 as I am on 15 years to go, and although the Chelsea is inflexible on repayments there are other ways (some tax free) to save up some capital overpayment funds.

my real downer on the chelsea is its early redemption profile is way higher than eg the Skipton

luckyfool

There is a limited distribution broker exclusive 20 yr fixed rate at 4.99% from ITL Mortgages. The rate is excellent for such a long term deal, and even better it effectively has a break clause for 1 month every 5 years where you can redeem it penalty free. (Available to 75%).

Unfortunately you need to find a broker that is an appointed rep of Mortgage Intelligence who can access it. If it was available to every broker I know for me personally I would be directing alot of customers their way (unfortunately they obviously do not want to much business, hence the restricted panel on the product).

Gazza1964

Thats great piece of info Luckyfool - thank you.