10yr Fix? really new to the mortage game!

Jacka87

I have my first home and I am looking to remortgage. Was thinking a 10yr fix as it would give me security and the interest rates can only go up in the long run. Unfortunatly I cant remortgage for 2months as I have a probation period in my new job.

Any opinions on fixing for as long as 10 yrs and does anybody know when the best time to fix is? I am not sure if its good that I need to wait 2 months or bad, or should I wait even longer???

Jules100_2

Me and my partner are also first time buyers and are having similar questions! We found that the longer you fix, the worse the rates. We decided to get a 2 year fix as we could get much better rates and cross our fingers that in 2 years the markets will be offering more and better deals again. But then we're lucky that we can afford to take that risk as both our incomes will cartainly increase in 2 years so we wont be in a position of struggling if the rates do increase. I suspect you may have trouble finding a bank willing to fix for 10years but i may be wrong. Have you been offered good rates with a 10year fix?

unite79

Jules100 -Ask yourself a simple Question, Why do you think the Deals are worse for long term Fixed!

You will find long term Fixed, but the rates are not as Attractive as the 2 year deals, That maybe due to Interest rates being the Lowest they have ever Been, so the only way is up.
Manchester B S do a 30 year fixed, with no penalty after 10 years!

allan673

hi - look at fixing when your probation period ends really, the rates cant get any lower than they are now, if anything i feel they will start to rise on the fixed rate offers in the near future.the 10 year fixes are only slightly higher than the 5 year fixes but youve got security with them.
i fixed last year for 10 years as i wanted the security of knowing what im paying each month. i fixed at 5.15% and am happy with that, as its only a matter of time before the rates creep up.
2 years is too short a time to fix for imo, most lenders do 10 year fixed rate deals, and most appear to be fixed at around 5%, excellent rate to fix for really.
the neighbour works for leeds bs and says the 10 year fixes are very popular.

allan673

Jules100 wrote: »

I suspect you may have trouble finding a bank willing to fix for 10years but i may be wrong. Have you been offered good rates with a 10year fix?

nearly every lender offers them

unite79

allan673 wrote: »

nearly every lender offers them

Actually, poster is correct, not many lenders do offer 10 year deals.

allan673

unite79 wrote: »

Actually, poster is correct, not many lenders do offer 10 year deals.

have another look, the majority do offer them.:rolleyes:

unite79

11 lenders in total - Not really a majority!

Cozworth806

Depends on your expected LTV when you come out of your current deal.
At about 75% LTV the best rate is 4.99% with Abbey

Turin_Turambar

Is it worth having a 2 year fix, after paying the arrangement fee which could £900. Isn't it better to go for a 5 year fix if your paying a large arrangement fee?

Jacka87

I have found that afew lwnders do offer 10 yr fixes and the rates are not much worse than the 5 yr offers. In terms of the 2 yr fixes I have 2 issues, I am certain the rates will be high in the period of2-5yrs from now so not too kean on 2or5 yr fixes, and secondly I added the arrange fee spread over the 2 yrs and it really adds to the cost of the mortgage.

I was really happy wit a 10yr fix I found with rbs but I can fix for 2 months yet. The main reason was that the deal was portable so I can move home etc and I can overpay 10% per year of the mortgage value. Since I am in my 20s I think I will be a mortgage holder for a lot longer than 10yrs so the 10yr is not a problem for me.