5yr Fixed ot 10yr Fixed

Moncs_2

Coming to the end of my fixed rate with my current lender.

I have been offered a 5yr fixed rate (5.29%) and also a 10ye fixed rate (4.98%) and not really sure what one to go for. (same fees apply to both)

Obvioulsy the 10yr one is lower rate, however do you think 10yrs is to long to be tied in for?

Gorgeous_George

Each time you move you pay fees.

I think you need to consider how long you will be in your current home. If you are likely to be there for more than 10 years, I'd go for the 10-year fix. Otherwise, the 5-yaer fix would be my choice.

As it happens, my circumstances are somewhat different and I settled for a tracker at Base Rate + 0.74% for life. Base Rate changes make little difference to me overall and I won't need to chase the best mortgage every 3, 5, 7 or 10 years.



GG

Moncs_2

Thanks, I don't see us moving home to be honest, the only thing that is putting me off the 10yr fixed is that I enquired if I wanted to borrow more during that time (ie, another £5k to do house improvments etc) then that extra would go on their variable rate rather than the 4.98%

payless

woolwich ?...

GG... yes lifetime trackers are becomoing popular BUT was BR + 0.74% the best you could get ??

tonydee

Moncs wrote:

Thanks, I don't see us moving home to be honest, the only thing that is putting me off the 10yr fixed is that I enquired if I wanted to borrow more during that time (ie, another £5k to do house improvments etc) then that extra would go on their variable rate rather than the 4.98%

Surely it would be better to have a £5k personal loan with a slightly higher rate over fewer years. It would save quite a bit on interest that way.

suzyp1982

Spooky
this is exactly the same post that i was going to do!
Barclays by any chance?

if you took the 10year fixed would you get charged then if you wanted to move? we moved a year ago and our current mortgage was transferred onto our new property without any fees?

tonydee

suzyp1982 wrote:

Spooky
this is exactly the same post that i was going to do!
Barclays by any chance?

if you took the 10year fixed would you get charged then if you wanted to move? we moved a year ago and our current mortgage was transferred onto our new property without any fees?

You must make sure it's portable if you think you may move within the term. Where people come unstuck is if they need to borrow more money they MUST meet the criteria set by the lender or you'll face expensive fee's to change lenders.

Moncs_2

suzyp1982 wrote:

Spooky
this is exactly the same post that i was going to do!
Barclays by any chance?

if you took the 10year fixed would you get charged then if you wanted to move? we moved a year ago and our current mortgage was transferred onto our new property without any fees?

This one is with the Woolwich

amboy

Can ypu not request to set a reserve on opening the mortgage and does anybody know if the woolwich one is portable?

suzyp1982

Just been to see a independant mortgage adivsor and this one (woolwich) came up for us and seems the best deal!???

This is portable to another house, if the mortgage was going to be cancelled for whatever reason the charge is 6% on the outstanding value of the mortgage. You can also overpay 5% each year of your outstanding balance.

Hmmm this or a 4.99 fixed for 2 years!???? im sooo confused? will rates go up? shall i go fixed for 10 years?

UK007BullDog

The main thing to think about when going so long fixed is what are your, your spouse and kids future plans.

Will you need money for home improvements?
Money for the kids further education?
Do you really want to live there for the next 10 years?
Need a bigger house because you want another child?

You really need to sit down and think why you want to go fixed for such a long time.

Pros:
You can budget and dont need to worry for the next 10 years.

Make sure your mortgage is flexible and offers you some of these:

1. Portability
2. Overpayments feature (with future drawdown - taking the money back you overpaid to fund home improvements for instance)
3. Further advances in the future without any penalties

There is nothing worse being stuck with a mortgage for such a long time when the lifestyle changes. Make sure you are fully aware of the penalty fees you would have to pay if your gave up your mortgage early.