| 5 or 10 year fixed rate mortgage ? 13:17 - Mar 9 with 4399 views | Yallop |
Later this summer my fixed rate mortgage is up. Currently I'm at 3.99% and my same bank are offering 1.9% for a 5 year fixed rate or 2.59% for a 10 year fixed rate.
I'm tempted to sign up for the 10 year deal.
Any mortgage buffs out? I appreciate I could probably get a better rate by shopping around but generally I'm thinking surely rates can't get much lower so it might be worth grabbing a 10 year deal?
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| 5 or 10 year fixed rate mortgage ? on 13:21 - Mar 9 with 4364 views | clive_baker |
Is there an early repayment fee? If not, or if minimal you might as well take it. If it proves there's better offers out there in 5 years and you regret taking 10 you can re-mortgage with someone else. If not, you're laughing for years 6-10 of the agreement rather than reverting to a higher rate and kicking yourself. |  |
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| 5 or 10 year fixed rate mortgage ? on 13:21 - Mar 9 with 4365 views | textbackup |
We went for a 5 year, only reason being the bloke at bank said 'whilst you don't want it to happen, you never know if you'll split up with wife in years to come'
So as long as we last 5 years more it won't cost to get out of mortgage lol |  |
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| 5 or 10 year fixed rate mortgage ? on 13:23 - Mar 9 with 4350 views | factual_blue |
Please bear in mind that in little more than 10 years all houses across Western Europe will be piles of irradiated rubble. |  |
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| 5 or 10 year fixed rate mortgage ? on 13:27 - Mar 9 with 4315 views | Reuser_is_God |
OsborneOneNil is your man. |  |
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| 5 or 10 year fixed rate mortgage ? on 13:31 - Mar 9 with 4300 views | Mark |
I always take the lowest rate I can get and use the savings to make overpayments to get the balance down. Currently pay 1.29% variable with Nationwide.
Check if you can make overpayments to get below a Loan to Value (LTV) banding to see the rate drop. |  | | |
| 5 or 10 year fixed rate mortgage ? on 13:51 - Mar 9 with 4239 views | J2BLUE |
I locked in for 5 years in December. |  |
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| 5 or 10 year fixed rate mortgage ? on 14:01 - Mar 9 with 4221 views | Kitman |
. You need to speak to a qualified person on this. If you are anywhere near the Gatwick area I could book an appointment.. |  |
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| 5 or 10 year fixed rate mortgage ? on 14:05 - Mar 9 with 4208 views | Yallop |
| 5 or 10 year fixed rate mortgage ? on 13:21 - Mar 9 by clive_baker |
Is there an early repayment fee? If not, or if minimal you might as well take it. If it proves there's better offers out there in 5 years and you regret taking 10 you can re-mortgage with someone else. If not, you're laughing for years 6-10 of the agreement rather than reverting to a higher rate and kicking yourself. |
Cheers all. Food for thought.
Yeah Clive just looked 6.5% buy out charge so five years rather than 10 might be best.
I just figured rates can't get much lower so in 5 years time I might regret so not fixing it longer. | | | |
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| 5 or 10 year fixed rate mortgage ? on 14:08 - Mar 9 with 4196 views | usm |
Take the 5 year and make over payments |  |
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| 5 or 10 year fixed rate mortgage ? on 14:10 - Mar 9 with 4174 views | Throbbe |
Are you likely to move in that 10 year period. Not all mortgages are portable.
Some providers will agree a rate several months in advance (we've just done this), so you may be able to set up the new mortgage to start as the old one ends and avoid any early payment charges. |  |
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| 5 or 10 year fixed rate mortgage ? on 14:14 - Mar 9 with 4158 views | Vaughan8 |
I took a 5 year fixed out in November. I just think 10 years seems quite a long time and things could change (I know the same could be said for 5 years).
The 10 year fixed was a bit more % so I just thought take the 5 year and see where I am at the end of it.
As people have said, take the 5 years and overpay. |  | | |
| 5 or 10 year fixed rate mortgage ? on 14:36 - Mar 9 with 4116 views | chicoazul |
All you need to know is, nobody knows what will happen with the economy or interest rates despite what an IFA or whoever may tell you. so take the rate thats best for you. I would be tempted to go with the 5 yr fix and make overpayments if you are disciplined enough to do so. |  |
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| 5 or 10 year fixed rate mortgage ? on 14:37 - Mar 9 with 4111 views | chicoazul |
| 5 or 10 year fixed rate mortgage ? on 13:21 - Mar 9 by textbackup |
We went for a 5 year, only reason being the bloke at bank said 'whilst you don't want it to happen, you never know if you'll split up with wife in years to come'
So as long as we last 5 years more it won't cost to get out of mortgage lol |
that's the kind of thing blokes at banks are trained to say. He didnt say it for your good, he said it for his. | |
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| 5 or 10 year fixed rate mortgage ? on 18:51 - Mar 9 with 3993 views | vapour_trail |
| 5 or 10 year fixed rate mortgage ? on 14:37 - Mar 9 by chicoazul |
that's the kind of thing blokes at banks are trained to say. He didnt say it for your good, he said it for his. |
Either that or he was shagging texters missus and was working on the insider info ticket |  |
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| 5 or 10 year fixed rate mortgage ? on 19:00 - Mar 9 with 3973 views | greyhound |
As a mortgage advisor my discussion would genuinely be look back 10 years and think what has changed for you. Can you look forward 10 years and commit to not reviewing your biggest financial outgoing. Do you genuinely have no expected changes in circumstances, if you were to need to move away from the provider could you stomach the very likely high early repayment charges if they could no longer offer you the mortgage you require. For instance. If you wanted to move and that lender couldn't offer you enough money butbthe one down the road could would you be will to part with several thousand pounds. 5 years is still long term and it reaches way beyond brexit.
On the other hand look at the margins in the payments. Are you prepared to pay x amount a month more for five additional years of stability. What does paying that amount more do for you.
In the last 10 years I have owned 4 houses, married twice had a kid and completed uni as a mature student. As well as leaving a career in finance, starting one in civics and returning back to finance. A 10 year fix would have left me in a difficult place. But mortgages products have their market. It may be right for you. See an advisor in branch and let them analyse your situation and recommend what is right. Go in with an open mind. I can guarantee you will probably end up on a 2 year deal. | | | |
| 5 or 10 year fixed rate mortgage ? on 19:03 - Mar 9 with 3953 views | greyhound |
| 5 or 10 year fixed rate mortgage ? on 14:37 - Mar 9 by chicoazul |
that's the kind of thing blokes at banks are trained to say. He didnt say it for your good, he said it for his. |
You wouldn't believe how many people we see who can't terminate their financial relationship with an ex because of erc problems. It's a really valid point. It recently cost my mate 12 grand in charges | | | |
| 5 or 10 year fixed rate mortgage ? on 19:09 - Mar 9 with 3932 views | connorscontract |
I'm not an IFA.
But interest rates are only part of the deal. How much are the charges? They can be low hundreds, they can be well over a grand. If you remortgage in 5 years to get another low interest rate you'll pay the fees again.
Only you can make the decision, but you'd be mad not to at least look on comparison sites and see if you can do better (although be aware that often the deal listed as cheapest will be based on the monthly payments and not include the upfront and termination fees). | | | |
| 5 or 10 year fixed rate mortgage ? on 19:16 - Mar 9 with 3920 views | greyhound |
| 5 or 10 year fixed rate mortgage ? on 19:09 - Mar 9 by connorscontract |
I'm not an IFA.
But interest rates are only part of the deal. How much are the charges? They can be low hundreds, they can be well over a grand. If you remortgage in 5 years to get another low interest rate you'll pay the fees again.
Only you can make the decision, but you'd be mad not to at least look on comparison sites and see if you can do better (although be aware that often the deal listed as cheapest will be based on the monthly payments and not include the upfront and termination fees). |
most providers offer a fee and a no fee option you must must must look at the difference in payments between the two. Multiply the difference by the number of months in the deal. If that figure is higher than the value of the fee then pay it, don't add it on. If not gonfee free. If you need help on this contact me by pm | | | |
| 5 or 10 year fixed rate mortgage ? on 19:21 - Mar 9 with 3905 views | connorscontract |
| 5 or 10 year fixed rate mortgage ? on 19:16 - Mar 9 by greyhound |
most providers offer a fee and a no fee option you must must must look at the difference in payments between the two. Multiply the difference by the number of months in the deal. If that figure is higher than the value of the fee then pay it, don't add it on. If not gonfee free. If you need help on this contact me by pm |
My point is that if you go for a 10 year then you are only paying the fees once in 10 years, if you change after 5 then you will pay them twice, and these, as you say, may negate (some of) the difference between 1.99 and 2.59%. | | | |
| 5 or 10 year fixed rate mortgage ? on 19:50 - Mar 9 with 3857 views | Yallop |
Cheers folks some cracking advice. I may take one or two of you up on the pm offer. | | | |
| 5 or 10 year fixed rate mortgage ? on 19:58 - Mar 9 with 3827 views | greyhound |
| 5 or 10 year fixed rate mortgage ? on 19:21 - Mar 9 by connorscontract |
My point is that if you go for a 10 year then you are only paying the fees once in 10 years, if you change after 5 then you will pay them twice, and these, as you say, may negate (some of) the difference between 1.99 and 2.59%. |
See what your saying. Normally unless your borrowing is over 160k it won't work out anywhere near cost effective to pay one anyway. If the provider only has fee based options go elsewhere as you are likely to make a saving just by lying a slightly higher interest rate and no fee. Lowest interest rate doesn't always make the cheapest mortgage of course. Good point though | | | |
| 5 or 10 year fixed rate mortgage ? on 23:41 - Mar 9 with 3692 views | flashblue |
Why on earth would you try to pay off a mortgage early! Borrow as much as you can for as long as you can. You can't take it with you so spend it. Money is cheap! |  |
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| 5 or 10 year fixed rate mortgage ? on 01:45 - Mar 10 with 3654 views | TractorWood |
| 5 or 10 year fixed rate mortgage ? on 23:41 - Mar 9 by flashblue |
Why on earth would you try to pay off a mortgage early! Borrow as much as you can for as long as you can. You can't take it with you so spend it. Money is cheap! |
http://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator
Compounding effect of having a lower capital sum on which the interest is based. Pay off as much as possible as early as possible and then retire. |  |
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| 5 or 10 year fixed rate mortgage ? on 08:12 - Mar 10 with 3560 views | Vaughan8 |
| 5 or 10 year fixed rate mortgage ? on 19:16 - Mar 9 by greyhound |
most providers offer a fee and a no fee option you must must must look at the difference in payments between the two. Multiply the difference by the number of months in the deal. If that figure is higher than the value of the fee then pay it, don't add it on. If not gonfee free. If you need help on this contact me by pm |
When I chose mine, the mortgage with a fee at the start worked out to be about £100-200 cheaper than no fee but a higher rate over 5 years. However I would have had to pay the £800 or whatever it was fee upfront.
It was just worth me having no fee and spending the extra over the 60 months. If we say £180, thats an extra £3 a month, but I have £800 extra in my pocket now.
As someone said above, the only person who can decide what mortgage is you. We are all different in different circumstances. | | | |
| 5 or 10 year fixed rate mortgage ? on 08:30 - Mar 10 with 3543 views | greyhound |
| 5 or 10 year fixed rate mortgage ? on 08:12 - Mar 10 by Vaughan8 |
When I chose mine, the mortgage with a fee at the start worked out to be about £100-200 cheaper than no fee but a higher rate over 5 years. However I would have had to pay the £800 or whatever it was fee upfront.
It was just worth me having no fee and spending the extra over the 60 months. If we say £180, thats an extra £3 a month, but I have £800 extra in my pocket now.
As someone said above, the only person who can decide what mortgage is you. We are all different in different circumstances. |
My argument was based on total amount payable on the mortgage. But your right if having 800 in your pocket now is more important or fees are not affordable it would be daft to pay them. | | | |
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