woolwich 10yrs fixed at 4.98% - is this good?

lisyloo

Does this mean if I wanted to pay my mortgage off in full i'd be charged 6% of the balance? I can't really see this happening unless I have a winfall!!!

An inheritance is a possibility.
The downside to these long rates is that you are tied in if things change e.g. want to move, get divorced, get an inheritance etc.
Personally I would prefer to fix for a shorter period but it really is down to what's best for your circumstances.

However, we will probably be moving house in the next 10years to a little more expensive property and maybe wanting to increase the term from 20years to 25 years - so would this mean we would be charged.

You should find out whether it's "portable".
This basically means you can carry on with it on a new property and not pay the fees. There are however 2 downsides.
1) You will be stuck with the same lender who may not be offering the best deals at the time.
2) As you will probably need to borrow more that will be on a different deal. You will then probably have 2 deals that end on different dates. This makes it harder to switch to a different lender in the future. So you are pretty much stuck with the same lender - so make sure you like them !!

Also does this apply to new customers as we are currently with the Woolwich for our mortgage anyway so it might not apply to use.

You need to ask.
With the same lender you don't need a valution or legal fees.
Often the application fees still apply but you need to check with them.

I don't know your full situation but from what you have said a shorter term may be better for you.
It's impossible to predict rates very far ahead, but it would give you more fleixbility and you can always get another fixed rate at the end of the deal.
There is some risk that fixed rates may have risen after a 2, 3 or 5 year term but that works both ways as they may also go down.

You have to balance the risk of rate rises with the need for flexibility.
There is no right or wrong answer (sorry) - it's just a case of choosing what suits you best.

omega27

The Woolwich 10yr fix is portable, but it's a shame the redemption penalty isn't at least tiered like similar products from other lenders. Harsh that you'll still have to repay 6% if you clear it after 9 years 11 months (not that you would!).

free4440273

don't know about the hidden clauses and provisos, but 4.98 per cent for ten yrs is an excellent deal. i know it's easy to say this now, but i have been saying this for ages on this forum: i see rates going up to 10, perhaps 12 per cent in a couple of years (i don't see them coming down below 5 per cent, put it that way).

stanmoresaver

free4440273 wrote:

I see rates going up to 10, perhaps 12 per cent in a couple of years

Yeah right!

free4440273

stanmoresaver wrote:

Yeah right!

glad you agree!!! yeah, right!!

sahmx5

Hello JoeyDoll,

We took out a 10 year Woolwich fixed rate in June at 4.67%. We can overpay by 5% per annum and are unlikely to have a windfall in the meantime. We have upsized due to a surprise baby (she cost us a fortune but is a priceless gift from God). It is extremely unlikely that we will move in the next 10 years so it was a good solution for us. If we do move, the mortgage is portable and we will be downsizing if our older children flee the nest.

I personally think that the base rate will rise some more. Fix it now while you can, peace of mind is a lovely thing to have.

knuckledragger

sahmx5,
You must have just slipped under the bar before they changed the rate- you did very well with that one. I was looking at it also but just wasn't in a position to switch at the time.

JoeyDoll,
go to http://www.moneysupermarket.com/default.asp?Source=MS and use the mortgage comparison facility to do a quick search of over 8500 mortgages. Specify a fixed rate type of mortgage for 10 years and it will show you the Woolwich Open Plan Switch. On the details page it then tells you about the free valuation and £200 cashback.

HTH
knuckledragger

Pricefamily4

Ian_W wrote:

Prior to 19/9/01 interest rates had not been under 5% for over 30yrs - see
https://www.houseweb.co.uk/house/market/irfig.html
and
https://www.bankofengland.co.uk/statistics/rates/baserate.pdf
Although rates haven't been above 5% since then, and we're said to be in a low inflation/IR period, over 10 yrs I would personally think it very unlikely you'll be on a loser with IRs if you can fix <5%. Obviously only a personal opinion though - no guarantees.

Where you might be on a loser is if your personal circs change and you either have to pay ERP charges to get out of the deal or you're at the whim of one lender if you want to borrow more to upsize, extend or improve your property. 10yrs is a hell of a long time to try and foresee in terms of personal circs and housing needs. That's the real danger IMO of a long term fixed. Only you can decide if you're happy to take that risk.

BoL whatever you decide.

Just had a look out of interest at the history bit and the bank of england and the charges were the same when My house was built back in 1925 as they are now!! just thought i'd share that with you!

Henry_Blofeld

I rang Woolwich to ask about this as the deal just sounds too good to be true. Realistically, rates won't dip below 3.5% for any sustained peiod but they could soar to 8% + based on history.
However, what does 'fully flexible' entail with Woolwich? I rang but they said it would take a half hour phone call to tell me!
Overpayments (which I could then withdraw if needs be) and portability without paying a big admin fee would be great....

JoeyDoll

Hi

Thanks for all your replies - thanks to knuckledragger - i'm trying to ring my branch to speak to the mortgage adviser but it's a nightmare negotiating the call centres - tried 5 times and been on the phone 30mins and still not spoken to anyone at the branch!! Arrrr!!!

Going to try and confirm a few things before I take it up. Will let you all know how it goes, thinking it's probably a good idea to fix the rate now before it rises further!!! Many thanks