5yr or 10yr fix at 6.08%

jaspal

Hi, I am looking at remorgaging - the best fixed deal i can get is
6.08% for 5 years or 10years. With a £500 admin fee and free valuation and free legal. This works out better (over the total period) than other lower rate fixrd products with higher admn, legal and value fees.

I am to overpay by about £300 pm anyway, so should hopefully pay morgage off in 15years as opposed to 23 years.

I am confused if i should fix for 5 years or 10years ? any suggestions ?

ixwood

Gamble time!!

Who knows? Anyone who knew exactly what IR would do, would be probably be rich quickly.

I'm not sure what I'd do.. I'd be reluctant to fix for 5 or 10 years myself, but could be a good move if rates go back to their previous "normal" range.

I think with everyone being so debt laden now, they won't go above 6 for too long. That'll really squeeze people now and be enoough IMO.

Anyone who took out a long fix a couple of years ago is loving it. If we ever invade Iran, IR will probably drop and I'm fixing til death. lol

JoeK_3

5 years is a long time 10 years seems like eternity.

Is it portable?

JoeK

KTF

If its from Nationwide (which I think it is) then it should be portable.

GunJack

I personally would go with 10 yrs. I'm moving at the moment and have got 15 yrs fixed. The thing is, if it's portable, you shouldn't have too many problems.

Also, if you plan on overpaying (within the limits of the product, obviously) then you know exactly what effect this will have on your capital.

AND, and this is the big plus in my book, you can budget with certainty for a good number of years without having to re-mortgage and pay more arrangement fees either.

MarkyMarkD

Someone's asked virtually exactly the same question on another thread:

http://forums.moneysavingexpert.com/showthread.html?t=511357

But I can understand that you can't find that using this site's useless search engine which won't even find "6.08%".

If you put 6.08% site:forums.moneysavingexpert.com into Google, it comes straight up with the other thread.


Anyway, apart from reading the other thread, I would advise you to be very careful about portability.

Portability is all very well except that if the lender doesn't like your new property, or your new job, or your new partner, or whatever else changes in the next 10 years, they might not want to lend on the new mortgage. Then portability becomes non-portability and you incur an ERC.

jaspal

thanks guys - il check re the portability, to be honest - i dont see me moving for at least 5 years - also, i have just realsised all teh hidden costs with morgages - value fees, admin fees, arangement fees, legal fees, ... bloody crazy, hence i am considering 5 / 10 years fix. I think it will be 5 years, as after that i want to get someting bigger.