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Any reason not to long term fix?
PlopPlop1379
Posts: 2 Newbie
Hi All
I'm coming to the end of my 3 year fix (i.e. 3/25 years in), and looking to remortgage onto another cheaper rate now.
I know no-one can predict interest rates, so it seems to me that as they're not going down anytime soon, I might as well fix for 5 years, as in my case it's not much more than a 2-3 year fix (+0.5% APR ish). The deal i'm looking at is with HSBC, and is portable and allows over-payments.
I don't mind missing out on that last 0.5% I could save, so is there anything I'm missing that means I shouldn't fix for that long? If I do need to move, is porting a mortgage generally OK, or does it really confuse everything?
Thanks!
I'm coming to the end of my 3 year fix (i.e. 3/25 years in), and looking to remortgage onto another cheaper rate now.
I know no-one can predict interest rates, so it seems to me that as they're not going down anytime soon, I might as well fix for 5 years, as in my case it's not much more than a 2-3 year fix (+0.5% APR ish). The deal i'm looking at is with HSBC, and is portable and allows over-payments.
I don't mind missing out on that last 0.5% I could save, so is there anything I'm missing that means I shouldn't fix for that long? If I do need to move, is porting a mortgage generally OK, or does it really confuse everything?
Thanks!
0
Comments
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To be able to port, you have to satisfy the lender's criteria, status and affordability requirements at that time.
If you decide you no longer need a mortgage for some reason, you'll end up having to pay an ERC.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
LTV now and in 2 years on a 2 years deal paying the same as the 5 years deal?0
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Good point - we're at ~57% LTV, so I think we've passed the biggest jump/threshold of 60%?0
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