10 Year Fixed

dwsjarcmcd

homer_j wrote:

I stand by my comments in saying that it is not a right - it is a discretion of the lender to allow the borrower to exercise this.

homer, we are arguing about the same thing essentially but it is a feature of a mortgage product and can be exercised by the borrower if they meet the lenders criteria. To that extent it is wrong to say it is at the discretion of the lender. What is at the discretion of the lender is whether they meet their criteria.

My point in my OP was that everytime someone posts about long term fixes, there is a broker (usually) quick of the mark to suggrest all of these are almost traps, and implying that if you move house then you are stuffed (see the 1st reply to the OP). All I was saying is that this is not nesserarily the case, and that there are options within the product you have i.e portability.

Of course if your circumstances materially worsen then that has a massive impact but not everyones does

itsakidsworld

Sorry everyone on this post. My information was not correct and so please ignore what was written. I had indead mis-read the information.

The best fixed I could find is 4.98% which I understand you can beat.

IAKW:embarasse

herbiesjp

dwsjarcmcd wrote:

homer_j wrote:

My point in my OP was that everytime someone posts about long term fixes, there is a broker (usually) quick of the mark to suggrest all of these are almost traps, and implying that if you move house then you are stuffed (see the 1st reply to the OP).

My post as you state was asking 2 simple questions! That is what a broker does! In order to offer best advice in all circumstances. (or in the case of the open forum honest impartial advice)

You seem to believe that just because a mortgage says it is portable, that the borrower is automatically entitled to port the mortgage and maybe even borrow more money

Like I have stated before, this is not always the case and is where a lot of people come unstuck - that is why i was trying to see what the OPs plans for the future were with those two questions

I have nowhere on this thread said 10 years fixes are good or 10 year fixes are bad - it all depends on what the client wants.

With anything you purchase, would you not like to be made aware of the "small print " i.e how portability works? You probably wouldn't because then that way you would be able to go back to the adviser and complain that it was not the right mortgage for you as it was not explained

Next you'll be telling me that you never have to pay Early Repayment Charges if you port your mortgage!

If you don't like the facts then don't read the post

dwsjarcmcd

herbiesjp wrote:

dwsjarcmcd wrote:

My post as you state was asking 2 simple questions! That is what a broker does! In order to offer best advice in all circumstances. (or in the case of the open forum honest impartial advice)

You seem to believe that just because a mortgage says it is portable, that the borrower is automatically entitled to port the mortgage and maybe even borrow more money

Like I have stated before, this is not always the case and is where a lot of people come unstuck - that is why i was trying to see what the OPs plans for the future were with those two questions

I have nowhere on this thread said 10 years fixes are good or 10 year fixes are bad - it all depends on what the client wants.

With anything you purchase, would you not like to be made aware of the "small print " i.e how portability works? You probably wouldn't because then that way you would be able to go back to the adviser and complain that it was not the right mortgage for you as it was not explained

Next you'll be telling me that you never have to pay Early Repayment Charges if you port your mortgage!

If you don't like the facts then don't read the post

I am well aware of the role of brokers but none that I know (and I know many) would give 'best advice' based on the 2 narrow questions you asked. Yes the future is important but all my post did was suggest that as well as looking to the future (which by definition, they can't know) they considered their current position. Something that needs to be asked when considering the most 'suitable' mortgage.

Regarding your last comment about ERC's on porting, are you implying that these always have to be paid these on porting? The way you put that comment could suggest to the people who use this forum to get ubiased, informed opinion (not advice) that this is the case and misleading and wrong.

Gorgeous_George

My view, FWIW, is that I would not consider a fix at less than 10 years. With 5 and 3 year fixes you need to factor in start up fees, valuations, exit penalties etc. Additionally, over the shorter terms interest rates are less likely to rise than over the longer term.

It may be important to have a way of paying extra to shorten the mortgage. In 2 or 3 years you may be able to afford larger payments. Unless you can find somewhere worthwhile to save the extra cash it is likely that paying extra on your mortgage will be your preferred route.

If interest rates rise significantly there will be far more people losing their homes than in the 80s/90s. Having a fixed mortgage protects until the fixed rate ends but then you may find your mortgage payment doubles while your house value is less than the outstanding balance. You cannot afford to move and cannot afford to sell. Stuck in a house you cannot afford until it's repossessed. I do not believe the BoE/Government will allow IRs to increase so dramatically.

Might be a different story if the Tories ever get back in - which I think unlikely at present.

I vote for the 10-year fix although I'm more than happy with my flexible, base rate tracker (BR + 0.75% with Britannia). I don't intend chasing 'cheap' deals and being stung by the extra fees again.

Mortgage brokers may not like 10-year fixes as it removes some of their clients for 10 years. Far better for them to arrange a mortgage for you every 2 or 3 years. Call me cynthia if you like



GG

herbiesjp

dwsjarcmcd wrote:

herbiesjp wrote:

I am well aware of the role of brokers but none that I know (and I know many) would give 'best advice' based on the 2 narrow questions you asked. Yes the future is important but all my post did was suggest that as well as looking to the future (which by definition, they can't know) they considered their current position. Something that needs to be asked when considering the most 'suitable' mortgage.

Regarding your last comment about ERC's on porting, are you implying that these always have to be paid these on porting? The way you put that comment could suggest to the people who use this forum to get ubiased, informed opinion (not advice) that this is the case and misleading and wrong.

No those were the first 2 questions I decided to ask - believe me there are many more that have to be asked as you well know - don't be silly now!

Have I said anywhere that they do not consider their current position? No! What I am saying is that having an idea as to what you think you may want to do - i.e buy a bigger house to start a family may influence what kind of deal you want to go for.

I repeat again portability is not guaranteed - if you think it is then that is your opinion I have 10 years worth of experience and know different.

Have I said ERCs are always payable? No! You do like to twsit things when facts are put to you. ERCs can indeed be payable - again read the small print (like I am advsing the forum) and you will find out. Don't read the small print and you may find out too late.

herbiesjp

Gorgeous_George wrote:

Mortgage brokers may not like 10-year fixes as it removes some of their clients for 10 years. Far better for them to arrange a mortgage for you every 2 or 3 years. Call me cynthia if you like



GG

Dear cynthia

Again I repeat there is nothing wrong with a 10 year fixed rate, as long as the person getting it goes into it with their eyes wide open, and meets their exact requirements.

dwsjarcmcd

herbiesjp wrote:

dwsjarcmcd wrote:

No those were the first 2 questions I decided to ask - believe me there are many more that have to be asked as you well know - don't be silly now!

Have I said anywhere that they do not consider their current position? No! What I am saying is that having an idea as to what you think you may want to do - i.e buy a bigger house to start a family may influence what kind of deal you want to go for.

I repeat again portability is not guaranteed - if you think it is then that is your opinion I have 10 years worth of experience and know different.

Have I said ERCs are always payable? No! You do like to twsit things when facts are put to you. ERCs can indeed be payable - again read the small print (like I am advsing the forum) and you will find out. Don't read the small print and you may find out too late.

What I said was your post implied that ERC's were payable, particularly to those on here looking for guidance and I stand by that. It was also you that used the word 'advised', not me.

I suggest you read your posts carefully if you think I am twisting things! I am well aware that porting is not guarenteed, if you'd read my posts as carefully as you suggest I should read yours you would see that. Nor for that matter is an application to a new lender. I have 17 years experience, not that I think that is relevant, now that's really silly

herbiesjp

dwsjarcmcd wrote:

herbiesjp wrote:

What I said was your post implied that ERC's were payable, particularly to those on here looking for guidance and I stand by that. It was also you that used the word 'advised', not me.

I suggest you read your posts carefully if you think I am twisting things! I am well aware that porting is not guarenteed, if you'd read my posts as carefully as you suggest I should read yours you would see that. Nor for that matter is an application to a new lender. I have 17 years experience, not that I think that is relevant, now that's really silly

Lets try and wrap this up shall we?

Have i said anywhere on here that 10 years fixed rates should not be used? No

Have I warned people about the small print around portability - Yes

When speaking about ERCs I have said they MAY be payable - a very important word. (Now in the days of endowment mis selling and companies trying not to pay out words become important, espcecially if lenders try and use those words to resist a mis selling complaint) So I stand by what I said, ERCs may be payable when porting - imply or assume what you like by that statement. Those ERCs may then get refunded. Again just trying


Again I am on the board here to help people go into things with their eyes wide open

If you would rather I told people portability was the best thing ever and you will never have any problems with it - sorry no can do!

We'll have to let the other readers decide for themselves - what you fail to realise is that it makes not one jot of difference to me wether the OP takes a 10 year fix or not as I am not advising them - I only hope their adviser will go to the same trouble to explain the mortgage product selected. I am just trying to raise awareness for the other readers and hope they find it useful


I 'm glad I can agree with you that no application to a new lender is guaranteed - but if your current lender will not port the mortgage you will be forced to find a new lender

Circles and going round springs to mind here

tonydee

All explained to me very well indeed over the past week or two herbiesjp. I now feel confident in my re-mortgage so thanks again.

p.s yes that is a 10 year fixed rate