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Fixing for longer than outstanding term
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Burnley_Lad
Posts: 277 Forumite


Is it possible to choose a fixed rate product that is longer than the outstanding term of a mortgage?
Thanks 😊
Thanks 😊
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Comments
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What would it be fixed to after the mortgage is paid off?Mortgage started 2020, aiming to clear 31/12/2029.2
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Burnley_Lad said:Is it possible to choose a fixed rate product that is longer than the outstanding term of a mortgage?
Thanks 😊1 -
Thanks both for your replies.
Looking at my options, I can fix for 5 years and have uncertainty for the remaining two years of the mortgage (and more than likely pay a higher rate than what I can fix for now), or fix for 10 years at the same rate and have certainty in what rate I will be paying for the rest of the mortgage.0 -
The product cannot exceed the remaining contractual term of the mortgage.2
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Thanks for your reply.0
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Why don't you extend the term to 10 years but over pay so it's paid off in 7?0
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Take the 5 year fix and overpay to clear it within that term.Mortgage started 2020, aiming to clear 31/12/2029.0
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By year 5 the amount owing will be a lot lower so the increased rate on a small amount could well be less than the increased amount on the higher rate for the previous 5 years.
Pretty easy to calculate.0 -
Take a nationwide retention best rates on 5y, 10y to be paid off in 7y
1.99% and 2.09%.
on £50k paying £640pmMortgage £50,000 payment £640 ERC/FEE rate 1.99% £0 new rate 2.09% £0 Time Years months Left on current 5 0 New fix term 7 0 amount left after(months) 60 Start rate End £50,000 1.99% £14,886 £50,000 2.09% £15,062 amount left after(months) 84 £50,000 1.99% -£166 £50,000 2.09% £32 Switch when ERC £0 Break even rate needed no fee and fee) 24 £14,886 3.223% £32
Get it wrong and it won't cost a lot(left after 7y) even if rates went to 6% its only ~£500(before any overpayments).£14,886 2.00% -£165 £14,886 3.00% -£4 £14,886 4.00% £160 £14,886 5.00% £329 £14,886 6.00% £503
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