10 Year Fixed

hollypoppit

I am looking to Fix my Mortgage for 10 Years. I have seen 4.98% with Kent Building Society. What do people think of a) fixing the mortgage for 10 Years and b) the rate Kent are offering?

This is my first post...please be gentle.

herbiesjp

Can you see yourself staying there at the property for 10 years? Will you need to borrow more money at a later date?

dwsjarcmcd

herbiesjp wrote:

Can you see yourself staying there at the property for 10 years? Will you need to borrow more money at a later date?

I am not sure that these are the most important issues. Assuming that the product is portable, then that is covered off and you may need to borrow additional money within the first few years, which is more typical.

To me, what is far more important is what you want to do and consider important. Do you want to ensure that your payments are set for that length of time? Are you prepared to pay a rate that could drop, making what you have seem expensive. Likewise this rate could just as easily increase, then you've got a great deal!

It could be that your stretching yourself a bit now but with the knowledge that you will increase earnings over the period, then the loan may become more affordable.

If the product has some flexibily for things like overpayments, then so much the better.

Brokers will give you many reasons why you should not take a 10 year fixed rate and rarely ever recommend them. Some of there reasons are valid, some I am dubious about.

You need to weigh up what is important for you and yours and base your decision on that

herbiesjp

dwsjarcmcd wrote:

I am not sure that these are the most important issues. Assuming that the product is portable, then that is covered off and you may need to borrow additional money within the first few years, which is more typical.

To me, what is far more important is what you want to do and consider important. Do you want to ensure that your payments are set for that length of time? Are you prepared to pay a rate that could drop, making what you have seem expensive. Likewise this rate could just as easily increase, then you've got a great deal!

It could be that your stretching yourself a bit now but with the knowledge that you will increase earnings over the period, then the loan may become more affordable.

If the product has some flexibily for things like overpayments, then so much the better.

Brokers will give you many reasons why you should not take a 10 year fixed rate and rarely ever recommend them. Some of there reasons are valid, some I am dubious about.

You need to weigh up what is important for you and yours and base your decision on that

I have not said these are more important than anything else - just asking the question thank you very much!


Porting is great if you can actually use the facility when you need it.

If your current lender will not lend you extra funds if you do need to move, the porting is useless and you will end up paying penalties to leave.

This is one area the OP would need to be happy with.

I have not said it is more important - just making them aware of this fact as most people think that you can port and there will be no problems.

Sometimes I wonder why I bother

dwsjarcmcd

''Porting is great if you can actually use the facility when you need it.''

If you are moving house and your product is portable, you can use it up to the level of your current loan

''If your current lender will not lend you extra funds if you do need to move, the porting is useless and you will end up paying penalties to leave.

''

Agreed, but in most (but not all occassions) your current lender would be your best bet both from knowing your track record and a lack of hassle and fees

''his is one area the OP would need to be happy with.

''

Fine but there are also many other and I was just pointing some out, as indeed you had.

free4440273

4.98 per cent for a ten year fix is quite excellent - nationwide, for example, is charging 5.16 per cent.

jamesd

5% fixed for ten years looks quite attractive to me at present. In both Europe and the US the outlook for interest rates seems likely to be upward rather than downward, once you look beyond the short term. Certainty has its advantages as well.

Tassotti

Is this mortgage transferrable? (is that a word )

If so, tie it in now, Worldwide interest rates are on the increase, and although, Britain are staying at 4.5% for the time being, this could easily change

In ten years we could well be looking at 12% rates or highr and we will all be in the proverbial

Clasics

Took out a 4.9% 10 year fix with the Co-operative Bank almost 3 years ago and haven't regretted it so far. Totally depends on what sort of person you are, we like to know the MOST our mortgage will cost us per month for the forseeable future.

applesrace

I to have been looking at a 10 year fix over the past month and since I've been looking the long term fixed rates have been increasing. The product i was looking at was a 10yr deal with Northern rock at 5.29%. However i have now been told this product is dropping to 5.19% from Monday.

Do you think this is a NR plan to grab extra business or do you think other lenders will follow suit ??

meanmachine_2

Well swap rates have jumped this week - not really sure why, so that's likely to impact on long fixes over the coming weeks.

A 5.19% could seem cheap very shortly.

On the other hand, if the US stop raising rates, the BoE might scrape keeping ours on hold this year and fixes could start to nudge down a touch.

On the other, other hand, Japan are about to start raising, so who knows?

Is inflation a phantom menace, or a real threat?

Yoda? Are you there?