10 Year Fixed Rate? Is it worth doing?

Swans1912

We have a 10 year fixed, it was the first house we bough together and wanted the security of knowing what we will pay for the next 10 years.

It helps with our budget and allows us to plan long term.

ixwood

I personaly would never get more long term mortgage debt for a new kitchen and certainly not a log cabin. Especially in th current climate.

You'll be paying them off years after they're worthless.

Have you considered saving instead?

UK007BullDog

A new kitchen sounds lovely. Especially if you want to live in the property for a long time. If you need a log cabin then go for it. If you can afford the payments, you have protection in place in case something happens and the income goes down or vanishes you have no problems.

Of course it is always better to save and then have the money but sometimes it is not possible.

I don't think the rates will go down a lot, not with the latest report of a near collapse of a bank in the UK (Bear Stearns) which has a huge impact on the biggest 4 banks in the UK.

ixwood

You'll pay 2-3 times the amount you borrow over a normal period mortgage. Long term debt for short term buys is unwise imho.

ixwood

And credit/debt is much easier to spend/waste than hard earned savings.

Kitchens need not be that expensive these days.

UK007BullDog

If a good adviser does a full fact find and finds out all of the details then they will get the right advice.

My new kitchen cost me £12K with plastering, plumbing, tiling, removal of internal walls, new doors, new electrics, lights, wallpapering, the units, white goods, curtains, curtain poles....... This was expensive for me, but for others it might be cheap. It all depends on their lifestyle and being affordable to them. It would take me years to save up, get frustrated with my old kitchen and depress me me even more as my kitchen was from the early 1980's and hated it. It was easier to ask for further borrowing over a shorter term than the main mortgage. One does not have to go the same long term as the original mortgage. It can be shorter or longer. Also I think most people understand that borrowing costs money. Its a price we pay for the priviledge and it also keeps the economy going.

Some peoples borrowing I would never do but if they can afford it then let them do it. It's their choice, as long as they do it with eyes wide open and a firm understanding of consequences.

glen8

We are looking at a 10yr fixed....sensible IMHO

Not sure if it makes financial sense to add 12k onto the mortgage for a kitchen/log cabin but at the end of the day life is for living.

Have you thought about taking out a 12k loan instead? I guess it all depends on the monthly payments but the same mortgage + loan would be better in the long run

socks_uk

glen8 wrote: »

We are looking at a 10yr fixed....sensible IMHO

Not sure if it makes financial sense to add 12k onto the mortgage for a kitchen/log cabin but at the end of the day life is for living.

Have you thought about taking out a 12k loan instead? I guess it all depends on the monthly payments but the same mortgage + loan would be better in the long run

Thanks for all your comments.

Yes, we have thought about a loan and, if it was just the summer house we might have gone for it. My husband and I said that we probably wouldn't move again so we would have the bathroom done as a wetroom to a high standard that would last us out (not sure where kitchen came into it... had a new kitchen 2 years ago).

The summerhouse/log cabin is a cheaper solution to the 'lack of space' problem we have when our family come to visit for summer holidays, my sister from USA and my husband's family from Canada. We would give up our room and sleep in the log cabin (Peili log cabin as in ARGOS & B&Q and other cheaper places). We want them to be comfortable when they stay - then we keep getting our cheap accommodation in California and Canada too!

We looked into having the loft converted but, for the length of time we need an extra bedroom in our 2-bed bungalow, it's not worth it and we don't know where the stairs would fit.

Yes, we realise that we'd end up paying more in the long run but with the 10 yr fixed we'd know what we were paying each month.

Gambler

socks_uk wrote: »

Thanks for all your comments.

(not sure where kitchen came into it... had a new kitchen 2 years ago).

:rotfl: .......................

UK007BullDog

Yeah, my mistake.:eek: Apologies for that.:o I must have exchanged bathroom for kitchen.

But the gist is the same. It all depends on your personal goals and your affordability now and in the future.