HSBC 10 year fixed rate mortgage

Beaver1981

Hello,

I have noticed that HSBC are currently offering a 10-year fixed-rate mortgage at 5.49% online.

I was wondering whether anyone had a view on whether this was a good product or not, and whether it's wise to fix your mortgage for such a long time.

If anyone has any thoughts I'd like to hear them,

Thanks.

epz_2

a few months ago it would have been a great temptation to fix for 10 years but we hav since had 3 interest rate rises and likely anouther one next month or so. all these rises have been priced into the policy and you are likely buying at the top of the curve.

think about it like this, many people who borrowed over the last 3-4 years will have their rates go up by 25% when thier fixed/discounted rates expire. now since interest rates are primaraly used to reduce consumer spending and control inflation a hike like that will do plenty to put the brakes on though it may take time to feed through to the general economy.

now appart from the fun and games this will create in the housing market it does to me at least indicate we should be getting to the high water mark of rates assuming china can keep swamping us with cheap imports.

in a situation like this you have to ask yourself how much free cash you have and what you think will happen, if you can afford a couple more .25% rate rises for a year or two then you may see the benifit later in the 10 year term. on the otherhand if you know you will be in real trouble if rates go up it may be worth paying for the privalage with a fixed rate.

presonaly im miffed that the .17% base rate lifetime tracker woolich were doing is gone, that would have been sweet if rates had dropped again.

asandwhen

woolwich have 10yr fix at 5.39 - £599 fee
Nationwide have 10yr fix at 5.48 - £499 fee