10 Year Fixed Rate? Is it worth doing?

socks_uk

After visiting our independant Financial Advisor, we've been offered a fixed rate of 5.63% for both 5 & 10 years (from Abbey National I think - forgot to write that bit down!). Our current 2 year fixed rate of 4.74% ends mid April. We still owe £62,500 (over 22 years) but want to increase it by £15,000 to pay for new bathroom & small summerhouse/log cabin.

We're not all that knowledgeable about mortgages (hence the reason we have a financial advisor) but having looked at the history of intrest rates on the Bank of England's website there is more risk of the rates going up by more than 2% than going down by more than 2%. We like the idea of knowing what our mortgage will be for the next 10 years

I guess my question is... Would any of you go for it and have a fixed rate for 10 years?
We have no intention of moving or borrowing any more money so it's very tempting.

jb3282

ive just recently taken out a 10 yr fixed for this same reason even if it did go down at least ur safe in the knowledge for 10 yrs if we want to move in this time we can take the deal with us so no early get out fee if needed and we can pay extra should we want 2

Addiscomber

Are there Early Redemption Charges if your plans should change and you need to move? Alternatively, is the mortgage portable? Could you overpay if you wanted to? You need to know these things just in case ... a lot can happen 5 or 10 years.

We fixed for 10 years just over a year ago, and am I glad that we did! Not only have rates gone up but the product arrangement fees have rocketed since then. However we are in our 50s, the 10 years takes us to the end of the original term of 25 years, and we are extremely unlikely to want or need to move until OH retires, and probably not even then. It is very comforting to know that the mortgage will not change and we can plan our budgeting for that length of time.

Our previous fix was 5 years and during that time I sometimes felt that we were paying a tad over the odds, but we probably weren't once the fees of keep changing shorter deals were factored in - I am not up to the maths involved in doing that and I have better things to do with my time :rotfl:

socks_uk

Addiscomber wrote: »

Are there Early Redemption Charges if your plans should change and you need to move? Alternatively, is the mortgage portable? Could you overpay if you wanted to? You need to know these things just in case ... a lot can happen 5 or 10 years.

I think the arrangement fee is £499 and I did ask about 'what happens if we want to move?' and was told that it wasn't a problem about it although can't remember if there was any fees. Was also told we could overpay by 10%.

We moved to this 2 bed bungalow 5 minutes from the beach 2 years ago with the intention of us staying here until we're in boxes but, as you say, things can happen. I'm 43 and my husband is 33 - he's the reason we was able to think about the mortgage going beyond me being 60 yrs.

Thanks for your thoughts.

socks_uk

It looks like the government actually want us to take on a longer fixed term mortgage.

I need to investigate further into the deal I was told about.

dwsjarcmcd

The simple answer is yes I would, but the real question is would you? From what your saying and the reasons you give, which are all very sound, you would!

wymondham

Depends on how much flexibility you want to overpay, or if you want to overpay at all? 10 years is a long time - lots can happen in that! Good luck in your decision.

plzhelpmesave!

we've just fixed with west bromwich @ 5.39% for 10 years. Had previously beenon 4.99 for 5 years, and our payments would have jumped up to £708 a month when that deal ended. Now, we are paying that amount but have borrowed extra money to clear off debts.

10 years seems a long time, but isn't really! seems like yesterday my and DH were agonising over whether 5 years was along time to fix it! We wanted the security of having a fixed payment over a fixed time, with flexibility to overpay, and hopefully we will overpay every month to get it down as much as possible in this period. Good luck with what you decide.

LostSocks

We've taken out a 10 year fix. We first arranged one with Norwich & Peterborough at 5.58% but then saw the First Direct one at 5.15% so applied for that one as we hadn't completed yet, so were able to.

We like the security of knowing how much we are paying for and we felt that the rates are more likely to go up than down, so the longer the better for us. Having a little one to, means we need security and knowing that we have to find £xx each month for the next 10 years is better for us. Our mortgage is portable, so if we do have to move (I hope not, this will be our 7th move in 10 years!!), we can. HTH

socks_uk

LostSocks wrote: »

saw the First Direct one at 5.15%

Could you tell me the arrangement fee for the First Direct 10yr one, please?

Gambler

socks_uk wrote: »

Could you tell me the arrangement fee for the First Direct 10yr one, please?

£299 booking fee

£299 arrangement fee


I've had to pay £200 valuation as I'm purchasing a new house. Check out their website. Note that the 10 year fix is now 5.49%