Would like to check if i am on right lines with going for fixed over variable

topcat007

I have a LTV of 60% and after a lot of hours have come to the conclusion fixed at 10years @ 2.94% with Nationwide may be the right for me to go.

Although i am really struggling with will i be paying too much as base rate does not look to be going anywhere fast but i am no expert by any means.

So the million dollar question for people who may have more knowledge on this , in the long run will the fixed rate pay dividends or are we likely to be around the 0.5% base rate for a long time.?

getmore4less

What alternatives do you have.
The starting point is the do nothing option
Then other fixes and trackers.

Then model various scenarios for rate rises.

The reality is that some have been saying the only way is up for a very long time.

There is a delusion that fixes mitigate risks when in reality they just change them.

Thrugelmir

My personal concern would be more with being locked in for such a long period. 10 years is a long time.

If you wish to shorten your mortgage term. Then overpay. As this will guarantee you pay less interest. Interest rates could change for any reason. High likely an event that's not even on the radar as yet.

topcat007

Thrugelmir wrote: »

My personal concern would be more with being locked in for such a long period. 10 years is a long time.

If you wish to shorten your mortgage term. Then overpay. As this will guarantee you pay less interest. Interest rates could change for any reason. High likely an event that's not even on the radar as yet.

just figured out well if my workings are correct my exit fee would be £5400 in the first year which is a bit scary.

Can i check if i took a 60k mortgage and wanted to exit on the third year of a year fixed would my exit fee be 3k going on the below info :

http://www.nationwide.co.uk/about/media-centre-and-specialist-areas/media-centre/press-releases/archive/2014/10/08-oct-nationwide-cuts-fixed-rate-early-redemption-charges

Year 1 Year 2 Year 3 Year 4 Year 5 2 year fixed 2% 1% 3 year fixed 3% 2% 1% 4 year fixed 4% 3% 2% 1% 5 year fixed 5% 4% 3% 2% 1%

Thanks for you very valuable help!!