Fixed Rate Mortgages

Guy_Montag

Since there's so many mortgage advisors in here, I have a quick question.

Do 25 year fixed rate mortgages exist in this country? & if so are they transferable? e.g. if I started having sprogs, could I transfer it to a new larger property?

herbiesjp

I think there may be one of two such schemes available and portable - just remember that if you do need to port the mortgage to a new property it will be subject to new underwriting, so if your circumstances have changed, you may not be able to port the mortgage. If you need to borrow more, you could also have problems, depending on your scenario at that point in time.

There used to be a few more providers, but because the take up was so low, those lenders pulled the schemes.

HTH

Gorgeous_George

I'd consider a 10 year fix if the rates were below 5%. Over 25 years, I'd need nearer 4% to make it worth my while taking the risk of IR's dropping.



GG

Guy_Montag

Gorgeous_George wrote:

I'd consider a 10 year fix if the rates were below 5%. Over 25 years, I'd need nearer 4% to make it worth my while taking the risk of IR's dropping.



GG

Well apparently (though I've not done the sums) the average interest rate over recent history is close to 8%. Therefore taking a 5.3% 10y fix is hedging against history.

Now, there are plenty of people saying IRs have peaked for this cycle, but this time last year people were saying much the same at 4.5% (??).

free4440273

Guy_Montag wrote:

Well apparently (though I've not done the sums) the average interest rate over recent history is close to 8%. Therefore taking a 5.3% 10y fix is hedging against history.

Now, there are plenty of people saying IRs have peaked for this cycle, but this time last year people were saying much the same at 4.5% (??).

without wanting to cause a 'furore' i was not one of those people. i have been saying on here for some time now that rates are on the way up: i would say between 6.25 - 6.5 per cent into 2007. for me, and this is only my opinion, a 'decent' fixed rate at 25 yrs (realistically speaking!) would be between 4.25 - 5 per cent. whether such rates are available i have no idea. have a lovely weekend also:)

Ian&Kel

I hate all this random guessing what is going to happen and then having to risk your financial well being on it! I'm the same really. I think I will get the next one fixed for 10 years as I predict they will rise. But thats only a guess obviously.

I just can't risk the rates doubling and end up crippling me. If they do go down it would be a pain in the !!!! but they surely won't drop that much!

I guess it all comes down to how much the mortgage pushes your finances! If money is going to be tight then I guess 25 years at least insures you can always afford your mortgage.

I'd be interested in the rates also!

anandp

Yorkshire Building Society are currently doing a 10yr fixed rate deal for 4.95%.

Early redemption penalties after the 10yrs is 1% but you'd pay that much extra within the life of the term and a higher rate anyway.

E.g. I saw 5.09% fixed for 10yrs somewhere else, but in the 10yrs, I'd pay over £3k extra in comparison to YBS above.

Product fee of £595.

Leon_W

I don't want to get involved in any wrongs and rights of it but Kent Reliance have a 25 year fixed rate mortgage at 4.98% for under 75%LTV, up to 95% is a squeak higher.

3% penalty within 25 years.

Seems a fair do to me and if rates move seriously lower then the penalty is not really a killer either.