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Quick advice needed please!
Dunners
Posts: 1,034 Forumite
Hello there
Was just hoping to pick your brains really............
OH and I have a fixed rate mortatge which runs out end of June. Our existing mortgage company have offered us a fee-free 10 year fixed rate at 5.89%, which works out as only £20 more than we currently pay.
I'm quite tempted by this, but do you think 10 years is too long to be tied in at the moment?
Many thanks
Sarah
Was just hoping to pick your brains really............
OH and I have a fixed rate mortatge which runs out end of June. Our existing mortgage company have offered us a fee-free 10 year fixed rate at 5.89%, which works out as only £20 more than we currently pay.
I'm quite tempted by this, but do you think 10 years is too long to be tied in at the moment?
Many thanks
Sarah
Some people create their own storms....then get upset when it rains!
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Comments
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I think 10 years is a long time to be tied to especially as there will more than likely be penalities if you want to change it for any reason in that time.
It does sound like a good rate but you need to consider the reason that it is IYKWIM.0 -
Is it portable without ERCs ? If you are possibly going to move in the next 10 years, then don't go for a fix like that unless it's portable.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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Hi, no, not likely to move, have found house for life :-)Some people create their own storms....then get upset when it rains!0
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ive just fixed for 10 years with first direct, i just wanted the security of knowing what im paying each month, plus i can offset and make unlimited overpayments - and i have no intention of moving house again.
the choice is yours??? no one knows whats going to happen with interest rates in the future, its all a gamble.
more and more people are opting for 10 year fixed rates i have noticed.
personally i think its not a bad rate youve been quoted, and if your happy to fix for 10 years then go for it.0 -
If the product is portable - please note that portability does not guarantee that you will be able to move the mortgage at any point without paying the ERC.
Portability is a feature that can be withdrawn or refused for any reason the lender wants to.
The term should be OK if this is the house for life though - that said, I meet first time buyers who think they have a house for life but do not consider family size increases etc.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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