10 year fixed ?

elvis27

hi all
my 7 year fixed rate of 4.99% has just finished and on svr of 4.79% and im want to get another long term fixed rate so that i know what im paying out, for security. my house is worth 180,000 and i owe 46,000 with 12 years left. i have done abit of homework on this and found this deal from the principality building society of 5.49% for 10 year fixed with a fee of £999. i make that a monthly repayment of £436.84 which is only £15 more than what im paying now which is managable on my wage. i dont want to be remortgaging every 2 to 3 years with fees of £999 on top to pay for.
my questions are am i doing the right think for fixing for so long,are the principality building society in a good state or are they there for the taking by the bigger banks.any advice would be most helpful thank you

speedbird1973

You've answered your own question - you could probably pay less over 10 years if you played the "tart" game. Or you can pay a little extra (although historically still quite low) for 10 years security. I'm doing the former. Nothing wrong at all with doing what you choose either.

TighterThanTwoCoatsOfPain

Sounds like you have already decided..

I went for the 10Yr fixed too but at 5.15%... I'm 18 months in and could get out of it very cheaply if i wanted, but given its offset, unlimited overpayments fee free, able to drop to interest only at my choosing online, withdrawl of overpayments etc, you wouldn't catch me chancing my arm on a Tracker unless it was BOE - 5% :-)

Its each to their own..

dimbo61

If you did take the 10 year fix how much extra each month would it cost you to reduce the term to 10 years ?
Use " whatsthecost" to work out the figures !
Borrowing £47k over 10 years at 5.49 works out at £510 a month
MF in 10 years !!!

elvis27

thanks for the advice,like you say ive made my mind up, but its always good the have a different view of the situation.
thanks

perplexed.com

TighterThanTwoCoatsOfPain wrote: »

Sounds like you have already decided..

I went for the 10Yr fixed too but at 5.15%... I'm 18 months in and could get out of it very cheaply if i wanted, but given its offset, unlimited overpayments fee free, able to drop to interest only at my choosing online, withdrawl of overpayments etc, you wouldn't catch me chancing my arm on a Tracker unless it was BOE - 5% :-)

Its each to their own..

That sounds like a good deal as I was considering a 10yr fix, too with a facility to overpay and reduce the term that way. Would you be willing to say who your provider is ( I realise my situation might differ but you never know )?

Thanks.

P.S. Shame you didn't have space for the "t" at the end of your name!

uzubairu

perplexed.com wrote: »

That sounds like a good deal as I was considering a 10yr fix, too with a facility to overpay and reduce the term that way. Would you be willing to say who your provider is ( I realise my situation might differ but you never know )?

We're on a 10 year fixed rate with the Nationwide and we're able to overpay (with limits), reduce/increase the term and get back overpayments very easily.

Due to overpayments over the last 3 years we have £19K that we're not paying interest on and can be accessed whenever we want.

perplexed.com

uzubairu wrote: »

We're on a 10 year fixed rate with the Nationwide and we're able to overpay (with limits), reduce/increase the term and get back overpayments very easily.

Due to overpayments over the last 3 years we have £19K that we're not paying interest on and can be accessed whenever we want.

Thanks, one to consider if they have a similar deal available.

[Deleted User]

uzubairu wrote: »

We're on a 10 year fixed rate with the Nationwide and we're able to overpay (with limits), reduce/increase the term and get back overpayments very easily.

Due to overpayments over the last 3 years we have £19K that we're not paying interest on and can be accessed whenever we want.

I am also with Nationwide currently on a tracker rate and soon to be moving onto the BMR at 2.5%. I have also been making overpayments on my mortgage but I am reluctant to continue this in case the money became inaccessible in the future. On the website they state "Any overpayments you make build up a reserve that you can use to make underpayments in the future (conditions apply)."
The question is what conditions apply? If you lost your job and wanted the £19K would they let you have it? Can the conditions that apply currently be changed in the future?

uzubairu

CR10 wrote: »

I am also with Nationwide currently on a tracker rate and soon to be moving onto the BMR at 2.5%. I have also been making overpayments on my mortgage but I am reluctant to continue this in case the money became inaccessible in the future. On the website they state "Any overpayments you make build up a reserve that you can use to make underpayments in the future (conditions apply)."
The question is what conditions apply? If you lost your job and wanted the £19K would they let you have it? Can the conditions that apply currently be changed in the future?

If they changed the conditions, I'm sure I would get notice beforehand, and then I could move out the £3.5K of Emergency Money that is part of the £19K.

You CAN get at the money relatively easily.
A colleague at work had the money from her Nationwide Overpayment Reserve (after making the request) in 8 days, so I know the feature works.

I found this on the Nationwide website, which explains the Overpayment feature.
http://www.nationwide.co.uk/MortgageStatement/flexible_features.htm

Since we've both filled our Cash ISAs for 2009/10 (and have done for several years previously) and the best instant access rate we have on another £9K is 3.5%, it makes good sense for us to be paying the rest into the mortgage account.

If I lost my job, we would initially stop with the overpayments which would free up £800-900 a month.
We borrowed an amount that was sustainable on just one income because we did all the worrying about what would happen if one of us lost our jobs before we took out the mortgage and hence the reason we took out a fixed rate 10 year product.

[Deleted User]

uzubairu wrote: »

If they changed the conditions, I'm sure I would get notice beforehand, and then I could move out the £3.5K of Emergency Money that is part of the £19K.

You CAN get at the money relatively easily.
A colleague at work had the money from her Nationwide Overpayment Reserve (after making the request) in 8 days, so I know the feature works.

I found this on the Nationwide website, which explains the Overpayment feature.
http://www.nationwide.co.uk/MortgageStatement/flexible_features.htm

Since we've both filled our Cash ISAs for 2009/10 (and have done for several years previously) and the best instant access rate we have on another £9K is 3.5%, it makes good sense for us to be paying the rest into the mortgage account.

If I lost my job, we would initially stop with the overpayments which would free up £800-900 a month.
We borrowed an amount that was sustainable on just one income because we did all the worrying about what would happen if one of us lost our jobs before we took out the mortgage and hence the reason we took out a fixed rate 10 year product.

The reason for my reticence is that I know that some lenders have been tightening up their flexible mortgage terms since the credit crunch started. I have recently been made redundant and in theory could pay off virtually all of my mortgage. However, I would have thought that my jobless status would prevent me from gaining access to this money if I needed it. I am in the fortunate position that I can get an after tax return on my savings which is equal to or greater than Nationwide's BMR of 2.5% so keeping my money in savings is not putting me at a disadvantage relative to paying down the mortgage.