Fixed Rate 5 or 10 years?

Dusk_is_Falling

Me and my boyfriend's 2 year fixed rate mortgage is coming to an end so we have been to see our lender today to see what they can offer us in remortgage terms. We were initially thinking of a 5 year fixed rate but our advisor has recommended going with the 10 year.

Looking online the rates for 5 and 10 years seem to be pretty similar so it looks good in theory but 10 years is just such a long time! Am I just being a commitment-phobe?

Our current financial situation is good but with marriage and kids hopefully on the horizon I would like the security or a fixed rate. Should we go for a 5 or 10 year fixed rate?

many thanks :-)

tomstickland

10 years is a long time; I'd go for 5 years.

MortgageMamma

I wouldnt go for either, Iwould go for a three year capped rate and then review it. Rates could be a lot mroe or less in 5 or 10 years and no one has a crystal ball. If you have initially borrowed an amount you feel comfortable with I would stick to medium rates. All down to personal choice but my fave product at the moment for remortgages is a 4.75% capped rate, collared at 3% and capped at 5.50% over three years with a 499 application fee free legals and a free valuation.

Dusk_is_Falling

Thanks for the advice, I'll run it past my boyfriend and do some research on capped rates.

Cheers!

DavB93

MortgageMamma, who is that deal with if you don't mind me asking the one below?


All down to personal choice but my fave product at the moment for remortgages is a 4.75% capped rate, collared at 3% and capped at 5.50% over three years with a 499 application fee free legals and a free valuation.

MortgageMamma

I deal with lots of lenders as I am independent and whole of market, and I deal with clients from every walk of life with differing needs. But I particularly like this deal - however it might not be suitable for our needs/you may not fit within the lending criteria so please check before you apply

The lender I am talking about is good old Skipton Building Society, who also happen to be a mutual....

and if you want more info just ask me or go to
http://www.skipton.co.uk/mortgages/index.asp

MortgageMamma

Dusk_is_Falling wrote:

Thanks for the advice, I'll run it past my boyfriend and do some research on capped rates.

Cheers!

IMO this is the most competitive capped rate at moment and theres not many on the market. Whilst doing your own research is a good thing I would strong suggest you seek professional advice from a fee's free broker, as any potential mistakes can be costly.

DavB93

Thanks for that MortgageMamma, will look into it. Looks like a canny deal, doesn't say how often the rate is reviewed though. Take it as soon as the Interest Changes the rate on the deal changes.

MortgageMamma

yes its a tracker it will go up and down in line with the bank of england base rate

tonydee

I've just signed up for a 10 year fixed with Nationwide, excellent competitive rate, piece of mind for 10 years, no more fees for 10 years and remember the current rates are historically low. Just make sure that if you plan to have a family and may wish to move within the 10 years that the mortgage is fully portable.

Good luck

p.s Nationwide also offer their exisiting customers the same deals as new customers, unlike many other lenders.

blackste

hi
i noticed that kent building society is doing fixed rate deals at pretty competetive rates with fees at about £500. they are doing the same rate 4.98% i think for 5 10 15 and 25 year deals. not many lenders giving that sort of rate whatever the term.