10 Year fixed rate mortgage at 3.24%

bigmondy

With only a £500 arrangement fee.

What's not to like?

I suppose the fact I asked the question means I know there must be something - but given that it is only a £100k mortgage with a LTV way less than 60% - is the only answer to: "what is not to like" the potential for zero interest rates. :eek:

andyfromotley

ERC's usually. people, die, divorce, have to move, and end up paying ERC's which imo are the only downside to taking out a long fix at the moment.

The other potential and more likely downside than a fall in interest rates is that they simply don't move at all. Who would have thought they would stay at 0.5% for so long? Not me. So if thats the case you would lose out in the long run, but imo its a price worth paying for security and the potential upside if rates start to rise. I can't switch until july but when i do i'll be on NW 10 year fix at 2.99% quick as a flash!!

bigmondy

Nationwide are offering 10 year fixed at 2.99?


Hoalie Moalie!

JimmyTheWig

How long left on your term, OP? I.e. what proportion do you expect to pay off in the next, say, 5 years?

bigmondy

14 years left Jimmy - will stick to monthly repayments initially as I don't plan to start overpaying until around 2020 - - - if I am spared of course Sir

andyfromotley

bigmondy wrote: »

Nationwide are offering 10 year fixed at 2.99?


Hoalie Moalie!

they do a cheaper one with a £1k fee, that doesn't work for me.

JimmyTheWig

bigmondy wrote: »

14 years left Jimmy - will stick to monthly repayments initially

Hmmm, that's a tough one to call.
The reason I ask is if you were on a short term (e.g. 10 years) then your balance would be significantly lower (alomst halved) in 5 years time and an interest rate increase would have less of an impact on you. In which case you wuold probably be better off with a 5 year fix and pay a lower rate now even if that means a higher rate in the future.
With a 14 year term it's significant, but not as much so as with a 10 year term.

There is no right or wrong answer here. Just do what sounds good to you.

bigmondy

Stability and security sounds good to me. Rates are low now - I could stomach them going lower for a few years to know I have the level playing field ahead for the remainder.

If that makes sense.

Carrera74

I'm tempted by the TSBs fix and flex deal for when we remortgage. It's a 10 year deal at 3.19 fixd but you can leave after 5 years with no penalty. There's no initial fee either. Sounds too good to be true. I think if you're have a current account holder you can get a better rate than the one above too.

bigmondy

That's only 0.05 more and freedom to move after 5 years. That's brilliant. I don't have an account with them though. What's the rate for account holders I wonder.

getmore4less

Check the effect of overpayment on a cheaper rate.

A low cost tracker with rates staying low for a couple of years will give a lot of protection against rises.