10 year fixed?

formerchamp

Have you tried using one of the links on the main MSE site, about getting mortgage advice for free.

http://www.moneysavingexpert.com/mortgages/best-mortgages-cashback

If you are happy to click through some of the links at the bottom of the page you might be able to get a handle of what deals are available and how much they are going to cost you.

I am sure your adviser knows their stuff but a little bit of extra knowledge never goes astray. Some of these sites do all the adding up for you, showing you the total cost of the mortgage over the WHOLE of it's term and not just showing the headline repayment figure. Try to think longterm, borrow as little as poss' and pay as little as poss' to borrow it!

squibbs25

I will have to add the £995 fee to the mortgage, i can raise £500 but not the £995. My dog died recently and have to pay the vets bill of just over £400 (which we had to put on our cc.)

formerchamp

Shop around for a cheaper mortgage deal, tell your adviser to work harder for his/her commission.

bankersmug

Sorry to hear about your dog squibbs :-(

I've just signed to a 10year fixed rate with Nationwide, at 5.68%. I went through many of the same emotions as you, i.e, should I do 5 year or 10 year, what about being tied in,etc, what if interest rates fall and I'm left high and dry,etc. There's no one correct decision as everyone is different, and nobody has a crystal ball.

My reasoning was that I can afford repayments at 5.68%, and as I'm self-employed, not having to prove my income every 2-5 years and avoiding arrangement fees is quite an attractive proposition. In these uncertain times the guarantee of a stable line of credit for 10 years is peace of mind to me (given that the lending criteria of banks has already changed a lot over the last few months alone, and not just with mortgages)
Historically rates have tended to be much higher than 5% and I can still make overpayments should I wish to whittle the loan down, and port the mortgage should I wish to move house.

However, I'm not sure whether I'd have fixed if the interest rate was 6.09% as I believe it is now.

Good luck!

Treadmill

Ten year looks like a good bet with the Cons likely to win the next election, I can see them taking control of setting interest rates over from the BoE (who Gordy gave the job to in 1997) and putting interest rates up because come election time inflation will be over 3% and the Cons don't like high inflation, obviously disregard this if you plan to move or think you might get a windfall and be able to pay off your mortgage within the 10 years.

dulux72

Not wishing to pee on anyones fire here but has everyone forgotten that historically interest rates have been a lot higher than they are now.

I have just taken out the Woolwich deal @ 5.59% for ten years

Yes I know that they are not as low as they have been BUT a rate of 5.59 is still very low in terms of the last 25 years.

Why gamble ?

If you have the opportunity to fix your mortgage, which is usually the largest outgoing then personally I would rather know what I need to find to pay it for the next ten years, rather than worrying about whether or not I am going to have more or less money to pay for everything else based upon the interest rate decision for that month.

Its your choice but alot of people have gambled on that very same decision and now that the 2 year low rate is ending they are finding that they are having to pay alot more. I know that at the end of the 10 years the 5.59 rate may no longer be low but at least I will have had 10 years of paying off the capital at that rate.

Kovo

Hi

I have also taken the Woolwich 10 Yr deal at (but at the then 5.29% deal 3 weeks ago)

I did intially wanted a 5 year fixed deal but looking around the best rate seemed to be Nationwide at 5.83%

So I looked at it like this.

Woolwich at 5.29 will be 0.54% cheaper than the Nationwide deal for the first 5 years, so over 10 years If I went with the Nationwide I would have to get a new deal at the end of the 5 year term at 0.54% less than the woolwich 5.29% deal to come out even. ie around 4.75% This might be possible but could as easily be over 6% or 7%, so it was a no brainer for me to go with Woolwich 5.29% deal over the 10 years.

will-in-estoril

Treadmill wrote: »

Ten year looks like a good bet with the Cons likely to win the next election, I can see them taking control of setting interest rates over from the BoE (who Gordy gave the job to in 1997) and putting interest rates up because come election time inflation will be over 3% and the Cons don't like high inflation, obviously disregard this if you plan to move or think you might get a windfall and be able to pay off your mortgage within the 10 years.

1. The next General Election is as far as two years away.
2. Opinion polls change year to year.
3. It is Conservative policy to KEEP the Bank of England independent.
4. Some of us remember Black Wednesday, Norman Lamont and 'Je ne regrette rien'. Is it likely that the Conservatives will ever want to set interest rates again? Somehow, I think not.