Should I get a 5 year fix or ten year fix

Thrugelmir

dimbo61 wrote: »

Come on guys the new BOE boss has said he does not expect the rate to increase in the next 2/3 years and it has been 0.5% since what March 2009

Too much media hype with a focus only on employment I suspect. Without comprehending the whole context.

In a bid to preserve what’s left of the Bank’s inflation-fighting credibility, Carney was careful not to issue a “pledge” on interest rates. He revealed three “knockouts” – scenarios under which rates may change regardless of unemployment. The Bank could raise rates sooner if inflation is expected to exceed 2.5pc over an 18-24-month horizon, if inflation expectations are no longer “well anchored”, or if loose monetary policy “poses a threat to financial stability”.

holly_hobby

dimbo61 wrote: »

You can sometimes PORT the debt to another property if the lender agrees

The the term porting actually relates to the mge product (discount, tracker etc), not the underlying borrowings it applies to (but to be fair this is a common misconception). And as mge debt isn't transferrable between properties, the new mge for the total amount reqd, will be assessed by the lender on the mortgagors status at the time of application - and if they fail the status checks they will suffer ERCs if they do redeem their mge borrowings.

Another point to consider, is that porting from the lenders point of view is discrectionary, meaning that they can reject the request even if all other pieces of the jigsaw fit.

Consequently, I wouldn't generally recommend a 10 yr fixed for a FTB, or someone whom already knows that they are likely to redeem the mge within the proceeding 10 yrs - given that being able to port the product may not be permissible for several reasons.

However, someone whom is on their 2nd or subsequent home, which for all intents and purposes will be their home for the next decade or longer, securing a long term fixed (whilst rates are relatively low) to give them security of budgeting knowledge etc, may well be suitable - but thats being said without any knowledge of their financial situ etc, and should not be taken as advice

Hope this helps

Holly

kingstreet

padington - are you using a broker for this?

FWIW the proc fee on a Santander 10 year fix is 0.7%, more than double the usual rate they pay.

Consider the options carefully and ensure there isn't someone else's interest being taken into account too.

padington

kingstreet wrote: »

padington - are you using a broker for this?

FWIW the proc fee on a Santander 10 year fix is 0.7%, more than double the usual rate they pay.

Consider the options carefully and ensure there isn't someone else's interest being taken into account too.

I used London and country and went for natwest 5 year fix at 3.09%. Could have saved £100 if I did it online without the broker but I've had a really good experience with London and country to wanted to stay with them.

Thanks for your help guys !