5 year fixed at 4.19 or 10 year fixed 4.99

mortgagebaby

I'm 31. I'm buying my 1st property.ive got a 25% deposit. im not sure what the next 10 years hold for me or what i'll be doing but very likely i will need a mortgage! both are portable. yes, there are penalties on both but worst case scenario if i ever dont need the mortgage (unlikely) I will pay off the penalty if absol necessary! Like the idea of certainty but appreciate I am paying for this priviledge. Thinking interest rates are only going one way, up! Please help, my head aches!

leveller2911

mortgagebaby wrote: »

. Thinking interest rates are only going one way, up! Please help, my head aches!

Think you answered your own question.......;)

mortgagebaby

thanks for this. i think im unsure cos people say, you're too young to be tied in, you dont know what ur circs will be but im 99% sure i'll need a mortgage in next 10 years! i suppose it also cos the penalties will be around for longer but it's portable... Any advice greatly appreciated. Thanks!

Trying_to_be_good

You only need a mortgage when you're buying a property, and the mortgage us then secured on that property. You can't have a mortgage without the property, so you'll need to do your detailed research about which product when you're planning to buy, not now!

natman

There is a 5 year fix mortgage by Britannia Building society on for 3.59% with no fees.

You can also get it for 3.39% and pay £999 for it...
Here is the link - no brainer for me -

http://www.britannia.co.uk/_site/channels/mortgage/products/5yr-fixed.html

Weronika

Trying_to_be_good wrote: »

You only need a mortgage when you're buying a property, and the mortgage us then secured on that property. You can't have a mortgage without the property, so you'll need to do your detailed research about which product when you're planning to buy, not now!

I second that - you need property to secure the mortgage!

You can reserve a deal up to 6 months while you are looking for a suitable property to buy though with some banks.

mortgagebaby

Thank you all for your time/advice. i have secured a property hence decision.....thanks natman, i will have a look.....any further advice greatly appreciated, thank you!

dimbo61

This is your 1st property and well done on getting a 25% deposit saved?
Is this a flat/small house ? do you think that you might want to move, get married, have kids in 5 years time ( only you can answer the questions)
What kind of job do you do ? will you be earning alot more in 5 years !
What does the mortgage deal revert to at the end of the fix SVR ?
Can you afford to overpay ( good saver!) 10% limit each year ( overpayments) Check this.
If this is your perfect home and you plan on staying there for the next 10/15 years ( room for extension? ) then take the 10 year deal.
If you think you might move up the property ladder then consider the 5 year deal and overpay whatever you can afford each month
GOOD LUCK

getmore4less

Repayment penalties are the thing to look at when looking at these long term deal.

Porting gives a way out but ties you to the lender for extra borrowing.

whats the lenders atitude to concent to let is another thing to look at.

With 25% there are other options like a lower cost tracker and overpaying.

Thrugelmir

mortgagebaby wrote: »

yes, there are penalties on both but worst case scenario if i ever dont need the mortgage (unlikely) I will pay off the penalty if absol necessary!

Then weigh up the possibility of moving before 10 years is up.

You'll be paying a premium for the 10 year fix and incur an exit penalty.

Better to take the lower 5 year fix and save the difference.

mortgagebaby

thank you all for your comments. i've got a 20% deposit (i made a mistake earlier).

i suppose i may get married, have kids etc but thought that i could port what could then be a preferable rate ie in 2017 say? appreciate i would be tied into same lender tho'.

i've got a good job and should be earning more in 5 years but wanted to make most of low rates now... ie worth paying more now for certainty etc...

does anyone know what the Leeds stance is re consent to let?