15-year fixed rate mortgages

phoilmc

Does anyone have opinions (good or bad) on 15-year fixed rate mortgages? Northern Rock are currently offering 5.49% on a 15-year term and we are considering this option. Having a fixed rate for 15 years seems an attractive option as interest rates seem to be recovering from a ‘low’. In theory, benefits include not having to pay remortgage fees every 2-3 years when the short fixes expire and the accompanying 'hassles' are reduced. Is there a hidden cost in going for such a deal?

These longer-term fixed rates don’t seem to have caught on here yet, although they are very commonplace in the US, Netherlands etc. Thanks as ever for your thoughts and experiences.

Dithering_Dad

If you're after a really long term fixed mortgage, kent reliance building society are doing one for 25 years fixed at 5.15%

http://www.krbs.co.uk/25yrfix75.aspx

Spangled

I saw that KRBS 25-year deal too, Dithering Dad, and was impressed by the 5.15% rate. But although the mortgage is portable, it doesn't seem to allow ANY overpayments - which rules it out for me. S'pose you can't have it all...

Leighthal

Spangled wrote:

I saw that KRBS 25-year deal too, Dithering Dad, and was impressed by the 5.15% rate. But although the mortgage is portable, it doesn't seem to allow ANY overpayments - which rules it out for me. S'pose you can't have it all...

Are you not alllowed the usual 10% per annum that seems standard these days?

phoilmc

thanks folks for the info on the 25-year deal but focussing on a 15-year deal. Aim to pay off before 25 years!

logie_bear

N-Rock fix is better then because no cap on under or over payments like its main rival Abbey 5.39%, which doesn't offer as much flexibility.

Antj29

it would be a brave mortgage adviser to advise a client to take a 15yr fixed rate. Personally i think 5yrs at most. there are very few people who can say 100% they would can plan that far ahead.

Bradford and bingley were doing a 10yr fixed with 5yr tie in period which was nice, not sure if still available.