Fixing for 10 years - is that a silly idea?

hippydip

We are coming to the end of our deal with `Halifax we have been offered a 10 year fix at 4.15% -  £121,456 left to pay on a house valued at £320,000 - 15 years left Repayment £906.07 a month.  Do you think it is silly to fix for 10 years - I've found the up and down of rates quite tricky emotionally and am thinking that I'd be better off knowing what we are paying and not having to watch the news.  However, how will I feel if rates drop again and I'm stuck with a higher interest rate - it's difficult to know, any thoughts/advice welcome

silvercar

what is the ERC if you wanted to escape?

I once fixed for about 7 years at 8.65% around 1993. Rates were higher then, so it wasn't a terrible deal. If you changed deal every 2 years you would need to factor in admin fees etc every time you moved.

hippydip

ERC is just short of £2000 - our current fixed rate ends on 30th April 2023

Linton

I would go with safety first and not worry about £2K out of £121K.  If you can manage paying the 10 year fixed rate now you will find things steadily easier as the payment is fixed but prices and hopefully your income increases.  Perhaps you could then think about other thngs.  For example knowing your mortgage is fixed you can safely invest more of your income for the long term.

RelievedSheff

We will have 10 years remaining at the end of our current fix rate and will most likely take a fix for the remaining 10 years if we can get it for around 4%.

We like having the stability of knowing what our repayments will be.

Fortunately we have a while left to go on our current fix of 2.3% yet. It doesn't run out until 31st May 2026.

MFWannabe

hippydip said:

We are coming to the end of our deal with `Halifax we have been offered a 10 year fix at 4.15% -  £121,456 left to pay on a house valued at £320,000 - 15 years left Repayment £906.07 a month.  Do you think it is silly to fix for 10 years - I've found the up and down of rates quite tricky emotionally and am thinking that I'd be better off knowing what we are paying and not having to watch the news.  However, how will I feel if rates drop again and I'm stuck with a higher interest rate - it's difficult to know, any thoughts/advice welcome

Do you think you’ll pay it off before the 10 years? 

Have you been offered a 5 year fix? If so at what rate.
If not then it’s probably best to take the 10 year as you’ve said yourself you like certainty and don’t want to be stressing about rates 

dimbo61

It's a debt and the sooner paid off the better.
Have you got any ideas about moving in the next 3/5/7 years ?
That is a cheap ERC on a 10 year fix.
I would take the deal and overpay every month if possible 

hippydip

MFWannabe said:

hippydip said:

We are coming to the end of our deal with `Halifax we have been offered a 10 year fix at 4.15% -  £121,456 left to pay on a house valued at £320,000 - 15 years left Repayment £906.07 a month.  Do you think it is silly to fix for 10 years - I've found the up and down of rates quite tricky emotionally and am thinking that I'd be better off knowing what we are paying and not having to watch the news.  However, how will I feel if rates drop again and I'm stuck with a higher interest rate - it's difficult to know, any thoughts/advice welcome

Do you think you’ll pay it off before the 10 years? 

Have you been offered a 5 year fix? If so at what rate.
If not then it’s probably best to take the 10 year as you’ve said yourself you like certainty and don’t want to be stressing about rates 

No; we won't manage to pay it off before the 10 years, but planning to overpay something each month where we can to reduce the term - we were offered 4.36% for a five year fix and 4.83% for a 2 year fix

angela110660

We are mortgage free now but we did several 5 year fixes during the life of purchasing this property and it gave us such peace of mind with the regular payment for budgeting while raising our family. If you find a decent rate / monthly payment we would deffo do it.

sevenhills

I got a ten year fix five years ago, at 2.69%

They always try to price in the rises or falls, but no knows what will happen in two+ years 
I expect to be still living here in another five years, do you know your future?

MFWannabe

hippydip said:

MFWannabe said:

hippydip said:

We are coming to the end of our deal with `Halifax we have been offered a 10 year fix at 4.15% -  £121,456 left to pay on a house valued at £320,000 - 15 years left Repayment £906.07 a month.  Do you think it is silly to fix for 10 years - I've found the up and down of rates quite tricky emotionally and am thinking that I'd be better off knowing what we are paying and not having to watch the news.  However, how will I feel if rates drop again and I'm stuck with a higher interest rate - it's difficult to know, any thoughts/advice welcome

Do you think you’ll pay it off before the 10 years? 

Have you been offered a 5 year fix? If so at what rate.
If not then it’s probably best to take the 10 year as you’ve said yourself you like certainty and don’t want to be stressing about rates 

No; we won't manage to pay it off before the 10 years, but planning to overpay something each month where we can to reduce the term - we were offered 4.36% for a five year fix and 4.83% for a 2 year fix

If you think the 10 years is too long to fix for then go for the 5 year fix and try to over pay when you can