5 or 10 year fix?

wanless

Thanks everyone for all the replies and sorry for the long delay in replying.

We won't be moving from our current home until the children have left (youngest is 1 next month) and were ready/wanting to downsize so will be easily more than 10 years

Getmore4less as you can see I don't post much we still actually have that mortgage we ported it to our new house and took out a second mortgage for the remaining borrowing we needed. So we currently have £65,000 on the base rate plus 1.29% tracker and £50,000 on the fix that ends in 2 months with a follow on rate of base plus 3.49% (not 100% accurate figures as I don't have them to hand but pretty accurate)

I think I'm leaning to remortgaging the full amount on a 10 year fix unless you guys think that's stupid

Thanks again everyone

getmore4less

I would think carefully before giving up a base+1.29% tracker

on the rest fees make a big difference so look at fee free options as well.

M0ney

I'd go for the 5 year but my current mortgage is only a 10 year term so I'd like to have it paid off a couple years early, in your shoes I'd factor the term of my mortgage in the decision if it were most likely to be more than 20 years I'd probably go for the 10 year since that is still a historically low rate.

kwmlondon

Jhoney wrote: »

Who is this with please? might be useful. Thanks

Oh now you're asking. I think HSBC? See a decent independent financial advisor, is my tip.

Jhoney_2

kwmlondon wrote: »

Oh now you're asking. I think HSBC? See a decent independent financial advisor, is my tip.

Yes I intend to, but I like to do research. Another poster also mentioned a lender, so thanks to you both.

Rollinghills

HSBC doesn't do 10y fixed rates, unfortunate as that would have been our lender of choice

kwmlondon

Ah, it's TSB
http://www.thisismoney.co.uk/money/mortgageshome/article-2877381/TSB-launches-3-44-deal-leave-halfway-free.html

JimmyTheWig

It's also relevant to look at how much longer you will be paying the mortgage for - i.e. how quickly your balance will reduce.

If you only have 10 years left on the term then your balance will almost halve in the next 5 years. In which case it makes sense to get a lower rate for the first 5 years even it means a higher rate on the second five years.
But if you've still got 30 years to go then that's not so much of an issue.

martinsurrey

getmore4less wrote: »

I would think carefully before giving up a base+1.29% tracker

£65k on (1.29 + base) + £50k on (3.49 + base) = average rate of
base + 2.25% and with base at 0.5% the OP current borrowings are at 2.75%

with base rate only going to go one way in the next 10 years, the fix looks good at 2.89%

fixing in will lose you flexability to over pay and save interest.

BUT with savings rates available at 2-3% now (5 year bonds) and once rates start rising, I expect savings rates to follow, the marginal loss of not overpaying is minimal , and could be negative in a few years at a borrowing rate of 2.89% (what I mean is you could take out 5 year bonds with what you would have overpaid, and earn the same interest as your mortgage is costing).

topcat007

TSb you can fix for 10 but only locked in for 5 .. After 5 no ERC