Swindon & Stroud 15 year fixed 4.99%

ringley

We're looking to remortgage at the end of November, and I've spotted this long term fixed rate which looks pretty good? OK, so I'd be tied in for 10 of the 15 years, but having a set monthly payment for the long-term would be useful. I know it's not generally advised to go for such long term rates, but what do people think?

Link here: http://www.ssbsmortgage.co.uk/ssbs/mortgages.product?PRODUCT_ID=1765&preview=1765&postback=1&productid=1765 You have to click through the initial disclosure document to see the details.

Thanks!
ringley

kenshaz

Mortgages: Sneakily get the best advice for free plus possible extra cashback

The Remortgage Guide: Free Printed or PDF MoneySavingExpert Guide Want to cut the cost your existing mortgage, add debts to it, move house or change the deal? This is a free printed 30 page guide taking you through it step-by-step (also available as an instant PDF download)

click onto these two links good luck

Ian_W

It's a very good rate but personally I'm not sure I'd like to be tied in for 10yrs. Lots of things can change in that length of time and even if portable, which most mortgages are these days [but do check], it won't cover every eventuality that could happen. You are very much at the whim of the lender if things change for you.

For me 3-5yrs is much more foreseeable in respect of family, housemoves, home extensions, need/want to raise capital, work moves and so on.

ringley

Ian_W wrote:

It's a very good rate but personally I'm not sure I'd like to be tied in for 10yrs. Lots of things can change in that length of time and even if portable, which most mortgages are these days [but do check], it won't cover every eventuality that could happen. You are very much at the whim of the lender if things change for you.

For me 3-5yrs is much more foreseeable in respect of family, housemoves, home extensions, need/want to raise capital, work moves and so on.

Thanks Ian. Yes, I know what you mean, but there are a few factors that may counteract that last point:
Firstly, we have one child and will hopefully have a second in the near future, but this house is our home for many years to come and has the rooms to cope with that. I'll be making medically sure that we stop at 2 kids!
Secondly, we had an extension done 2 years ago, and won't be doing any more work on it.
Finally, my father-in-law is trying to throw money at us at the moment, wary of potential inheritance tax hits for his kids when he moves upstairs. So, any work that did need doing would be covered that way.

So, with that further info in mind, does the deal look any better for us?

jamesd

Ringley, one inheritance thing to consider is that routine gifts out of after-tax income are one of the things that are exempt from inheritance tax, including in the years just before death. One interesting option for your father-in-law might be establishing the regular giving pattern of paying part of the mortgage payment. See Gifts that are part of your normal expenditure and the definition.

kenshaz

I believe that you should spend your children's inheritance,on world cruises,exotic holidays,expensive cars and pure indulgence.

brannyrhino_2

Whatever you do don't listen to brokers advice as they hate fixed rates at long terms as it lessens their cream off on churning!!!

Ian_W

ringley wrote:

So, with that further info in mind, does the deal look any better for us?

Yup, it certainly do!!

Though brannyrhino is entitled to their opinion, I do think there is a big difference for many people in going from remortgaging every 2yrs to fixing - with penalties for early redemption - for as long as 10yrs.

sarkin

Brannyrhino I think you may find you are very very wrong. If you had taken a 5 or 10 year fixed rate out in 1997 you would have lossed thousands. Many of my clients took long fixed rates in 1998-20000 as they remembered rates as high as 15%. and two years later runing round like headless chickens when the base rate hit 4% paying massive redemption fees to get out of the deal. for the future no one knows. Over the next 10 years interest rates could go a lot lower. Short term they are on the rise, what happens if we join the euro in 5 years time, you may find the base rate drops. I am all for long fixed rate but I think 5 years is a max.

herbiesjp

brannyrhino wrote:

Whatever you do don't listen to brokers advice as they hate fixed rates at long terms as it lessens their cream off on churning!!!

Tosh

A broker is working on behalf of the client.

If a client wants a 10/15 year fixed rate, then the adviser will research10/15 year fixed rates. A good adviser will point out the complications of having fixed rates for such a long period.

However if a cleint is going into the decision with their eyes open, then there is no reason why an adviser would not arrange such a mortgage as long as it was suitable for the client

HTH

ReportInvestor

If the mortgage is portable then it looks OK to me.

You know where you stand for the next 15 years . There are no further arrangement fees to pay . And it's 1.76% lower than most banks' SVRs and 1.25 lower than the Nationwide BS BMR.

And exactly just how low could mortgage rates go in that time?

Isn't the potential danger is on the upside?