Long term fix

MDL74

I'm looking to take advantage of a 2.39% 10 year fix. In my opinion longer term fixes aren't going to get much better than this - i don't intend to move house either.

Only issue is that i'm four years into a five year fix with an ERC of 1% of outstanding balance (c£1,700) to pay from Jan 1st

15 months to wait to remortgage is quite a long time although i appreciate rates have been low for longer than anyone believed.

Is it worth paying the ERC for ten years security?

YHM

Purely down to personal choice. Some people would see that £1700 as a necessary evil to secure the 10 year fixed which could either pay off handsomely if rates were to shoot up or could backfire significantly if you subsequently need to remortgage again or move and your lender wont allow you to port.

A broker will guide you on available rates and lenders etc, but the decision as to whether the security of the 10 year rate is worth it is down to you I am afraid.

AnotherJoe

What is the security you think you’d get ??

amnblog

A bit like taking 2.49% now rather than waiting to see if you can get a 2.39% next year.

MDL74

AnotherJoe wrote: »

What is the security you think you’d get ??

Is this a trick question?

amnblog wrote: »

A bit like taking 2.49% now rather than waiting to see if you can get a 2.39% next year.

Are you saying that paying an ERC equates to a 0.1% increase over a ten year fix?

Thanks

amnblog

MDL74 wrote: »

Are you saying that paying an ERC equates to a 0.1% increase over a ten year fix?

A 1% ERC does

kingstreet

Had our first request today for a ten year fix illustration...

... in about the last ten years!

amnblog

I had a request for a PT to one earlier today.

The mortgage term had ended and the borrower was arguing with the lender about an extension.

He thought securing a 10 year fixed rate would tie the Lender in and seal the deal.