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Worth getting a long term fixed rate mortgage?
NameUnavailable
Posts: 3,030 Forumite
Hi,
I'm in the process of buying a house and only need a smallish mortgage. I will probably take a 10 year term to keep the payments low and maybe pay it off early if I can save enough to do so (I could have a shorter mortgage term but then I'm committed to higher payments every month).
I am considering either a fixed rate for 5 or 7 or 10 years. My inclination is to go for 7 years in the hope that by the end of year 7 I will have the ability to pay the mortgage up and the early redemption penalty will no longer apply by then.
I could go for 5 years fixed but it's unlikely I'd save enough to pay it off by then and I'm thinking it's unlikely that rates will get much lower than they are now, so will probably end up paying more from year 5. I do understand that if my circumstances change and I need to sell within the fixed rate term I will lose out by having to pay early redemption penalties.
Any thoughts/advice welcome.
I'm in the process of buying a house and only need a smallish mortgage. I will probably take a 10 year term to keep the payments low and maybe pay it off early if I can save enough to do so (I could have a shorter mortgage term but then I'm committed to higher payments every month).
I am considering either a fixed rate for 5 or 7 or 10 years. My inclination is to go for 7 years in the hope that by the end of year 7 I will have the ability to pay the mortgage up and the early redemption penalty will no longer apply by then.
I could go for 5 years fixed but it's unlikely I'd save enough to pay it off by then and I'm thinking it's unlikely that rates will get much lower than they are now, so will probably end up paying more from year 5. I do understand that if my circumstances change and I need to sell within the fixed rate term I will lose out by having to pay early redemption penalties.
Any thoughts/advice welcome.
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