Fixed @ 5.6% for 10 years?

magnolia65

Had a word with our bank to see if there was any packages they had to reduce our monthly mortgage payments and we could fix it at 5.6% for 10 years.

I was wondering if anyone out that has fixed their mortgage for this long and how do they feel about it?

I'm a bit worried by doing this we'll make a mistake although in certain ways it would be good for us as it works out by 10 years both our kids will have been through Uni. Child No1 would go and then child No2 would go the following year and we will have to pay for 2 in Uni at the same time for a couple of years, so we are trying to get out finances in order ready for this.

The_Bear_6

Can we get an idea of size of mortgage, remaining term, current rate/product and the affordability of a 10 year rate (i.e are either of you expecting to change jobs, lower pay, retire, buy a holiday home in Bulgaria in the next 10 years)?

magnolia65

The_Bear wrote: »

Can we get an idea of size of mortgage, remaining term, current rate/product and the affordability of a 10 year rate (i.e are either of you expecting to change jobs, lower pay, retire, buy a holiday home in Bulgaria in the next 10 years)?

mortgage at the moment is 152k
Value of house 300k
21 years left
835.00 per month

If we go fixed at this rate it will be 777.00 per month

We are thinking of topping up by 15k for new windows/kitchen/bathroom (+ en suite and downstairs cloaks) which will add roughly 100.00 to the 777.00 so not much more. Which means the house will done, so no money for at least 10+ years needs spending on the property.

I'm back to working now so have my extra wage coming in and whats spare will be getting saved for the next 4 years rather than spending that on home improvements we were going to use it for if we don't change and top up.

Have to say house desperately needs the work as it 20 years old and nothings been changed.

herbiesjp

You dont say what your earnings are, or if you have any other debts, but there are cheaper 10 fixed rates out there.

DO you have to pay a fee to go onto this 10 year deal? What fee would you need to pay to leave your current lender?

Some deals start from 5.28% with free legal fees and valuations

HTH

magnolia65

herbiesjp wrote: »

You dont say what your earnings are, or if you have any other debts, but there are cheaper 10 fixed rates out there.

DO you have to pay a fee to go onto this 10 year deal? What fee would you need to pay to leave your current lender?

Some deals start from 5.28% with free legal fees and valuations

HTH

Sorry didn't realise anyone needed more info.

75.00 set up fee.

OH 46k
Me 7k

No debts, although credit ratings haven't been so good, yet we are a lot better over the last few years and no mortgage arrears.

The_Bear_6

Who are your existing lender? They will almostly certainly charge for a further advance which will override most of the deeds release saving (if not all) by staying with the same lender.

So if you want a 10 year term then the 5.28% above is definitely an option, comes with a decent app fee at 595 and free val and legals. But this comes with a bloody huge early repayment penalty of 6% so if you want to leave you're screwed.

Perhaps it would be wiser to consider a five year option, currently quite competitive.

JoeK_3

magnolia65 wrote: »

Had a word with our bank to see if there was any packages they had to reduce our monthly mortgage payments and we could fix it at 5.6% for 10 years.

I was wondering if anyone out that has fixed their mortgage for this long and how do they feel about it?

I'm a bit worried by doing this we'll make a mistake although in certain ways it would be good for us as it works out by 10 years both our kids will have been through Uni. Child No1 would go and then child No2 would go the following year and we will have to pay for 2 in Uni at the same time for a couple of years, so we are trying to get out finances in order ready for this.

Although you have been kind enough to supply further info, it is always advisable to have the full facts before being committed to advice. You may find that the further advance from your current lender is at a different rate to that of the original mortgage amount and it may not be fixed but at their Standard Variable Rate.

Could you find that out?

JoeK