10 Year fixed mortgage

crescent179

Were thinking of taking out a 97% mortgage with the Halifax which would be fixed at 5.79% for 10 years.

Do you think its a big gamble to commit for 10 years ? How do you see it going ?

ukbondraider

I think 10 yr fix (or more) is only the way to go in this climate.

Those who fix for 2 or 3 yrs and then get in trouble because of rising rates are to put it politely stupid. Of course if you plan to sell the house on after 2 or 3 yrs then it is a different matter but if you intend to live their for 10+ yrs then it is a no brainer.

JoeK_3

crescent179 wrote: »

Were thinking of taking out a 97% mortgage with the Halifax which would be fixed at 5.79% for 10 years.

Do you think its a big gamble to commit for 10 years ? How do you see it going ?

Have you considered a 10 year capped?

This would give you an each way bet.

JoeK

everton09

I have just started a ten-year fixed rate with First Direct. I was very lucky and got 5.49% and its an offset, so if rates (highly unlikely) go down then you still have a bit of flexibility the offset rate on current account and savings is 6.25% to compensate.

Melissa177

I compromised and went for 5 years fixed rate. I'm not sure I would have done ten because I would plan to move before then, but since rates are low, and likely only to go up, a 2-3 year fix didn't make sense.

Addiscomber

Don't forget to factor in the savings from not having to pay what are becoming increasingly hefty arrangement fees for remortgaging for shorter terms. Would it be a portable mortgage, and would there be the option to overpay a certain percentage of the capital each year if you wanted/were in a position to do so?

We chose to fix for 10 years just after Christmas, just in time to get a rate just under 5%, and I am sure that we will not regret it. However this takes us right to the end of our mortgage and we are not likely to want to move before then, if at all.

homer_j_3

crescent179 wrote: »

Were thinking of taking out a 97% mortgage with the Halifax which would be fixed at 5.79% for 10 years.

Do you think its a big gamble to commit for 10 years ? How do you see it going ?

Without knowing your exact circumstances at the moment, it is impossible for me or anybody on here to tell you whether a 10 year fix is right for you.

The things you need to consider are:

- Can you forsee yourself being in the same property for the next 10 years

- Is it likely that your personal circumstances will mean that you have to move house within the next 10 years

- Is it likely that your work commitments will mean that you will be likely to commit to the same house for the next 10 years

- Is there anything else that you may know about happening in your life that I have not covered which may need you to move house in the next 10 years.

Yes I know that these questions will have some impossible answers but the point I am getting is that by committing to a 10 year mortgage, unless you find one that has shorter tie in periods then you need to really be certain that you are ready for the ERC if you need to get out.

I am not against recommending longer term products but they have to be suitable and right for you. If they are not right then any benefit you gain from the product can be easily lost quickly.

Can you think back 10 years and try and put that time into perspective - although time does go quickly it is a very long time.