10 year mortgage mistake!

Nobli

We were going through a really horrible time in January last year and remortgaging was one step too far. I locked in to a 10 year mortgage because I couldn't bear the thought of going through it all again. Now I read that that over the course of 10 years we could be paying £30,000 or more above that of other mortgages. I can't believe I've done this. Even an extra £500 a year to spend on a camping holiday would be a godsend and now to think that I'm wasting approx £3000 a year is unbearable.  Please is there anything that I can do? Should I be looking for a way out of this mortgage?

Petriix

Check how much you can overpay, then overpay as much as possible early on. The interest savings will compound over the years and save you loads.

[Deleted User]

What is your balance, term, and current interest rate? 

TN1984

Is the mortgage not affordable or are you annoyed you are paying more currently than if you'd gone with a shorter term deal? If the latter, there is really no way to know at this point if it will actually cost you more over the term of the product, as you don't know what rates are going to do over the next 10 years. It might end up saving you money. Another way to look at it would be you have secured a rate for the long term and don't need to worry about your payments going up every 2 to 5 years each time your product expires. 

As the first post says, you can overpay to certain levels and reduce the interest over the longer term by bringing the balance down, but early redemption fees on a 10 year mortgage are likely to be quite hefty.

getmore4less

Also payment and lender? 

enthusiasticsaver

What is the interest rate?  It is very difficult to say that overall you will spend more by fixing for such a long time so any figures you have seen about potential losses are not accurate and relying somewhat on guesswork. The benefit of fixing for a  long time usually is that you know where you stand just in case interest rates rise.  Of course historically over the last fifteen  years or so interest rates have only come down but there is no guarantee that will continue. You either resign yourself to thinking that this will be your mortgage rate now for the 9 years and comfort yourself that at least you have certainty or you pay presumably a hefty ERC and take a chance interest rates will go lower or at least not rise. Personally I would overpay if you are able to (and the interest rate is high)  but presumably if you are looking for savings this is not an option?

Caz3121

Nobli said:

Now I read that that over the course of 10 years we could be paying £30,000 or more above that of other mortgages

do you mean in comparison to other 10 year mortgages or just in general. 
If the former, did you work through a broker to find the best deal or did you choose this product yourself?
If the latter, I doubt anyone can say for sure whether you will end up paying more or less than if you had taken a 2,3 or 5 year product instead as nobody knows what the interest rates would be in 2,3 or 5 years when you would be looking for a new product

Thrugelmir

What's to say what the future might hold. No way of predicting.  

getmore4less

It will be possible to do some estimates but helps to have some data. 
At least what the person used to establish the £30k

£100k 1% is  £1k  so to get to £3k py needs bigger mortgage and or not very good rates. 

There have been some good 10y deals maybe the OP got one of those. 

Once the details are known a ditch the fix can be looked at. 

dimbo61

All bets are off with Covid19 and it's anyone's guess what Interest rates might be in 12 months never mind 2/3/5 or 8 years time.
You have long term security and the ability to overpay by 10% a year ?
If you want do something about your interest rate then overpay each month.
You could be mortgage free in 10 years with aggressive overpaying.
We had a 22 year mortgage but overpaid every month and cleared it in 10 saving £50,000 in Interest.
Join the Mortgage Free board and learn how to pay off the debt ASAP

IAMIAM

My advice is always stick with 2 year fixes until things start moving the wrong way, you are then always 18 months away from a new deal if needs be. Especially if you have orginally gone with a lender who are a good retention lender. Hsbc, nationwide, platform etc