FTB with big deposit. Good time to tie into a fixed rate for 10years?

mickym · 4 September 2011 at 4:32PM

1st time buyers here.

Doing some research today on some comparison sites it seems Yorkshire Building Society would be able to offer us a 10yr fixed at either 4.19% (with extra set up fees) / £623 per month or 4.39 (with minimal setup fees) / £632 per month.

As interest rates are likely to be the lowest they will ever be, my common sense is telling me this is a great idea to snap up.

Those lending us the money have said for us to only worry about paying back £5k of the loan.

Id be interested in what people have to say on this though?

We need to make a decision quick as we are up against other bidders, and it needs to be a quick sale.

Thanks

Ms_Scarlett_2 · 4 September 2011 at 4:36PM

I'm wondering the exact same thing for much the same reasons, mickym, so I shall watch this thread with interest... Good luck!

Thrugelmir · 4 September 2011 at 5:22PM

Do you intend to move house in the next 10 years? The ERC's are very high on these products.

So think carefully before locking in. As you there's changing your mind.

mickym · 4 September 2011 at 5:31PM

Yes I see what you mean..but no... dont intend moving.

I see this as our family home to last us at least 10 years.

hpsauce_2 · 4 September 2011 at 6:39PM

You can port YBS to a new house I think.

YBS also do a 5yr mortgage that is 3.49% which we have gone for although I can see the appeal of the 10yr one as we like the certainty fixed rates give you and have just finished a Northern rock 5yr fixed which worked for us as we didn't intend to move.

Ms_Scarlett_2 · 4 September 2011 at 7:10PM

hpsauce wrote: »

You can port YBS to a new house I think.

YBS also do a 5yr mortgage that is 3.49% which we have gone for although I can see the appeal of the 10yr one as we like the certainty fixed rates give you and have just finished a Northern rock 5yr fixed which worked for us as we didn't intend to move.

Don't know if you've actually signed paperwork and gone to full application yet, but the YBS five year fix one is now 3.39% - the rate changed in the last couple of days. The 3.49% rate is now a fees assisted one at £495 rather than £995 arrangement fee. All other criteria the same, just down 0.1%. We have a referred AiP which YBS are taking ages to process, but turns out (if we're accepted - sadly quite a large if) the delay may work in our favour as they'd be obliged to give us the lower rate! Bonanza! :T:T

hpsauce_2 · 4 September 2011 at 7:17PM

Thanks for that, but I should have put we going for the offset 5yr one and have already swopped from the 4.09% it was when we first applied, sorry

dimbo61 · 4 September 2011 at 7:40PM

I have just finished a 5 year fix offset with YBS and although we paid a higher rate was happy to have the security of a long term fix at the time ( now on a tracker!)
BUT and this is the big BUT for both of you will you be staying in that property for the next 10 years ??? Is it big enough ? Is it in the right area for work ! and schools ! transport links ?
YBS have very tough lending checks ! LTV and income plus the new buzz word affordability

Ms_Scarlett_2 · 4 September 2011 at 7:45PM

Thanks for this dimbo61 - I've been trying to find out how tough YBS are on their lending checks, as I have a bit of a spotted history of slightly late credit card payments, as I've mentioned elsewhere. The mortgage we want is only 2/3s of what they consider to be the bottom end of our affordability, my bf's credit history is spotless and he earns significantly more than me and could very nearly qualify for what we want just on his own, so I'm crossing fingers, toes and all else that maybe they give me a break because he's so clean. Plus we have 25% deposit, albeit a gifted one. We find out the decision tomorrow hopefully. I'm beyond nervous...

mickym · 4 September 2011 at 8:13PM

dimbo61 wrote: »

I have just finished a 5 year fix offset with YBS and although we paid a higher rate was happy to have the security of a long term fix at the time ( now on a tracker!)
BUT and this is the big BUT for both of you will you be staying in that property for the next 10 years ??? Is it big enough ? Is it in the right area for work ! and schools ! transport links ?
YBS have very tough lending checks ! LTV and income plus the new buzz word affordability

Yeah it is big enough.

It is in fact only a short walk from where we currently live so we know the area. Neighbours are elderly so no problem with noise, place has potential for expansion, and transport links are excellent for public transport, trains and motorways.

We have lived in our current place for 4 years and time has flown so no doubt 10 yrs will too!

Please keep your comments coming

dimbo61 · 4 September 2011 at 9:19PM

please raed all the T&C,s carefully ! if you are allowed 10% overpayments each year you could be Mortgage free at the end of a 10year fix.
YBS are a good company but they have also taken over a number of smaller lenders Chelsea and Barnsley BS in recent years So is " Big is beautiful"
4.19% might in 3/4 years time be a great rate if the BOE base rate returns to normal levels of 5/6%

FTB with big deposit. Good time to tie into a fixed rate for 10years?

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