7&10 year fix

dont_use_vistaprint

My bank is offering me 7 years at 1.49% or 10 years at 1.99%.  The 7 year is only 0.1% higher than the best 2 year fix from Halifax (1.39%) with monthly payment at £806 vs £799. Surely if theres any time to take a long fix its now and these are good rates to fix at. Are there any reasons anyone can think not to take 7 year fix. 

I checked overpayments and it includes a not so generous 5% per annum and the product has a £749 fee.  I am going to check redemption and rate portability as its not listed in the details provided so far. But other than what esle is there  to watch out for ?

Thanks

getmore4less

Barclays 7 year is a sweet spot in the market.

They have  genrerous overpayments when you look at the details.

dont_use_vistaprint

getmore4less said:

Barclays 7 year is a sweet spot in the market.

They have  genrerous overpayments when you look at the details.

Yes its the barclays premier 7 yr fix but the overpayment is 5% per annum as opposed to normal 10% 

getmore4less

ERC is 5% for the fix
Not all overpayments count toward the ERC free bit, gives a lot of flexibility and high total overpayments.
ERC free limit 10% on 7y
5% is on the 10y.

[Deleted User]

Both the 7yr and the 10yr produce illustrations on my sourcing software showing a 10% overpayment allowance.   The Barclays product guide on the intermediaries site states 10% as well.  

getmore4less

The 5% I saw was for higher lending 10y products


Been confirmed on other threads overpayments upto 3 times regular payment don't count towards the 10%.

[Deleted User]

Every day is a school day. Never seen that on any documents. Will have to dig out the t&c and check.  Thanks for the tip

RelievedSheff

At those rates I would be seriously tempted by a long term fix like that when we come around to remortgage again to see out the term of our mortgage. We will only have 10 years left on our mortgage by the time we remortgage again so that 10 year fix would be very tempting indeed.

dont_use_vistaprint

Thanks all, you are correct overpayment is 10% I was reading the redemption amount thats 5%. I actually had already paid £200 to Halifax and they miraculously completed the survey same day but I am reconsidering now just unfortunate to lose £200

getmore4less

Deleted_User said:

Every day is a school day. Never seen that on any documents. Will have to dig out the t&c and check.  Thanks for the tip

it surprised me when someone posted a while back.,  its kind of mentioned on the web page but not obvious,
https://www.barclays.co.uk/help/mortgages/repayments-rates/overpayment-charge/

payments less than 3 times don't seem to count which means there is a lot of overpayment allowed hich can swing a deal for those that might hit 10% with other lenders

Coupled with the 1.49% at 75% LTV its a tough deal to better for those looking at 5y but could manage a 7y

Also Barclays allow a track and then fix using the reward rates,  which can be a decent deal for the 75% LTV even with the extra fee on the tracker

dont_use_vistaprint

They also dont charge a valution fee which is nice, so the £749 fee is really only £499 in comparison to other lenders.