Fixed Term (20+ years) mortgage

egroeg1980

Hello all. 

My existing term is due in Jan next year. Currently on a lovely 1.5% rate (unbelievable!).

So I stumbled upon a term fix mortgage from Kensington mortgages for 20+ years at 3.3%.

Clearly, the repayment is significantly more than I am on now, but I'm trying to balance that rate over the longer term projection.

I know nobody has a crystal ball, but what is the consensus on long term projection for the BoE rates and an I making a mistake locking myself in for the entire term? 

Open to speculation. 

jimjames

What are the early payment penalties? If you're likely to want to move in that time it could be expensive

Linton

Long term interest rates are well below the values pre-2008, so there is still a lot more room to rise than to fall.  But 20 years is a very lomg time, a lot could happen.

 - @jimjames question on flexibility is important. You need to understand the t's & c's
 - 3.3% is not onerous for a mortage. If you were living on a fixed or limited income then insuring yourself against unaffordable interest rates in the future has many attractions
 - Other companies may offer long term fixed deals, they are common for retirement mortgages

Can you get a shorter term fixed, say 10 years?  If you are employed with an income that is likely to increase broadly in line with inflation over the long term then in 10 years time the mortgage payment could be much lower in real terms and so the advantages of a 20 year fixed would be less important.