Long fixed rate when getting older

Samsung_Note2

Just wondering what folks thoughts are on this....were going to hopefully remortgage in september/October time,since buying back in 2006.

What i'm wondering is,would it be a good idea to have a fixed rate for say 10yrs given the ages myself and the wife are,im 45 and she will have just turned 50 when were looking at remortgage.

Given the current mortgage is £103k (house value maybe £165/£170k) and will move to repayment,im thinking in 2/3/5 yrs time its going to be more difficult to remortgage given we will be that bit older.

Or will it be worse where im mid 50"s and wife is 60 years old and no chance of changing due to the age"s.

datlex

Why would it be harder to re mortgage? The trouble with a 10year fixed rate on a mortgage is you pay a lot more.

Samsung_Note2

datlex wrote: »

Why would it be harder to re mortgage? The trouble with a 10year fixed rate on a mortgage is you pay a lot more.

Its a question rather than a statement...just thinking the older we get as a couple,would we be seen as a higher risk,only had the one mortgage and that was down to the adviser being more slippery and dishonest than Kim Jong-un and the lies he fed NRAM...:o

So despite having a mortgage coming up 12 years i still consider us newbies.

Just really thinking out loud...:)

AnotherJoe

How long will you be remortgaging for ?
It depends what your income is going to be when you are retired if the remortage when you are 60 is for say 20 years or will it be paid off by the time you are retiring at say 65.

There's been a lot of publicity recently about lenders going up to 85 and 90 because they can take pensions into account which they were much more reluctant to do.

But in your case I would take a 2 or 3 year fix and use the lower repayments to pay more (if you can as long as that doesn't impact upon pension contributions). I don't see any need to take any long fix just because you think it will be difficult to get a mortage at age 60 if that wil onky be for say 5 years and you'll be working or you'll be retired but pension income will comfortably cover the mortgage.

Samsung_Note2

AnotherJoe wrote: »

How long will you be remortgaging for ?
It depends what your income is going to be when you are retired if the remortage when you are 60 is for say 20 years or will it be paid off by the time you are retiring at say 65.

There's been a lot of publicity recently about lenders going up to 85 and 90 because they can take pensions into account which they were much more reluctant to do.

But in your case I would take a 2 or 3 year fix and use the lower repayments to pay more (if you can as long as that doesn't impact upon pension contributions). I don't see any need to take any long fix just because you think it will be difficult to get a mortage at age 60 if that wil onky be for say 5 years and you'll be working or you'll be retired but pension income will comfortably cover the mortgage.

That makes sense,wasnt aware they would consider allowing mortgage to run after retirement age,assumed come 65 it would be game over regards borrowing beyond retirement age.

Realistically given the industries i work in (security and Construction) i will probably be one of those that continues to work until they drop,pension over the years has been ignored in favour of the here and now.

Over paying does sound like a possible plan..again something we should have been doing for the last several years but again,was more interested in day to day living than thinking how quickly time was passing.

Cant really sit down with a broker for another few months due to nasty s on credit file and time is passing so slowly,thousand questions to ask...grrr

getmore4less

As long as you don't plan to extend the full term, retention deals should be straightforward unless the policies get changed.

remortgages get a bit harder as size of loan and term get small/short or circumstances change.

If you think you might need longer than the current full term then extending now may be an option.

if clearing in full on the current term is OK then a lender with a combination of decent rates and retention rates is a good compromise.

Hw long is left on the current full term?

£103k @ 3% (zero)
10y £1000 (£858)
15y £720 ( £572)
20y £570 ( £430 )

Samsung_Note2

getmore4less wrote: »

As long as you don't plan to extend the full term, retention deals should be straightforward unless the policies get changed.

remortgages get a bit harder as size of loan and term get small/short or circumstances change.

If you think you might need longer than the current full term then extending now may be an option.

if clearing in full on the current term is OK then a lender with a combination of decent rates and retention rates is a good compromise.

Hw long is left on the current full term?

£103k @ 3% (zero)
10y £1000 (£858)
15y £720 ( £572)
20y £570 ( £430 )

Interest only at the moment and 19yrs...£103k owed.

Only paying £400 monthly..could quite happily double that if i knew the rates were going to hold for the next few years.

Thrugelmir

Is your mortgage still with NRAM or has it been sold to another party?

Samsung_Note2

Thrugelmir wrote: »

Is your mortgage still with NRAM or has it been sold to another party?

No Landmark took it over with same terms..one of which is they dont offer remortgage and simply run the mortgage as was with NRAM.

Only now after going Bankrupt in 2010 is the credit file(s) (come August and October) looking healthy enough to look around for a better deal.

mark55man

7 year fix with coventry is currently 2.09% (sorry OP if your credit score/LTV denies you these) best 5 year fix is 1.83%. There is a long tail of offers around these. While I agree that previously long term fix were a % or so above the 2-3 year rate and on 100K 1% is 1K a year which is a lot of money. Now the 2-3 year gap is only 0.3% or so.

The BoE (what does it know) suggest that by 2021 we will have rates gone up tp 1.25% - this will make the SVR like 5% which will be more expensive over 7 years. So I get you will be able to remortgage agin then - but adding £1K product fees every 2-3 years is a comparable cost

My plan in 3months when my 5 year fix is within 6 months of expiry is to go for the 7 year fix which will take me up to 2-3 years to go at age just over 60. Although in year 1 that will be £300 more expensive than the cheapest it will still be cheaper for me, and I like the certainty - and given the cost to me is now much lower than previously (ie when the savings for short term fixes were greater.)

getmore4less

Samsung_Note2 wrote: »

Interest only at the moment and 19yrs...£103k owed.

Only paying £400 monthly..could quite happily double that if i knew the rates were going to hold for the next few years.

Don't understand your thinking or the logic behind this statement.

the three things that make a mortgage cheaper.

1. Borrow less
2. lower the interest rate
3. borrow for a shorter time.

If you can pay more that sorts out 1 over time and as a by product helps with 2.

if you can afford £800 over 19y you can afford rates up to 6.7%

what rate are you paying now?