Remortgage - Fix for How Many Years?
Discussion
My current mortgage deal is about to come to the end of it's fixed rate deal so I need to decide on a remortgage. I've always gone for a 2 year fixed deal previously but surely interest rates are as low as they will go and the only way is up from here on in?
Rumblings that the BOE are also considering rate rises seem to occur quite regularly so bearing all that in mind, would it be better to go for a 5 year fixed rate instead? They seem to come in at about 0.7-1 percent more than the 2 year deals but obviously protect against rate rises for the next 5 years.
Over to you.
Rumblings that the BOE are also considering rate rises seem to occur quite regularly so bearing all that in mind, would it be better to go for a 5 year fixed rate instead? They seem to come in at about 0.7-1 percent more than the 2 year deals but obviously protect against rate rises for the next 5 years.
Over to you.
Have you considered a Ten year fixed option?
The upfront fee split as a per year cost is way way lower than a 5 year too.
I'm finishing off our extension first but then will be totally remortgaging and frankly I'm keen on the longest fixed rate possible to totally de risk interest rate fluctuations.
The upfront fee split as a per year cost is way way lower than a 5 year too.
I'm finishing off our extension first but then will be totally remortgaging and frankly I'm keen on the longest fixed rate possible to totally de risk interest rate fluctuations.
Welshbeef said:
Have you considered a Ten year fixed option?
The upfront fee split as a per year cost is way way lower than a 5 year too.
I'm finishing off our extension first but then will be totally remortgaging and frankly I'm keen on the longest fixed rate possible to totally de risk interest rate fluctuations.
Yup, I'd be looking at 10 year products if they fitted my profile. However I like the ability to make decent overpayments.The upfront fee split as a per year cost is way way lower than a 5 year too.
I'm finishing off our extension first but then will be totally remortgaging and frankly I'm keen on the longest fixed rate possible to totally de risk interest rate fluctuations.
Willhire89 said:
Take a moment and think where you were, and what you were doing in life ten years ago and just how different your situation is (likely) now...............
Five years is a good chunk of time - ten is huge
I moved twice. Five years is a good chunk of time - ten is huge
Got married
Had 3 kids
I don't foresee any changes & even IF we did move again get a portable 10year fixed. It's issue free.
Jockman said:
Willhire89 said:
Take a moment and think where you were, and what you were doing in life ten years ago and just how different your situation is (likely) now...............
Five years is a good chunk of time - ten is huge
Fair Comment.Five years is a good chunk of time - ten is huge
Rates will not go down in ten years time instead they can only really go one way.
Get a portable version so if you move house it makes zero difference.
Is it purely the worry that you cannot pay it off quicker? Most people don't/cannot accelerate mortgage payments/term reduction.
Welshbeef said:
Get a portable version so if you move house it makes zero difference.
Unless you can't meet the lending criteria at the time of porting due to an unforeseen change of circumstance, probably linked to the unforeseen reason for wanting to port the mortgage........life has a habit of throwing you curve balls.I've remortgaged more people off ten year rates than we've put on them............
Sarnie said:
Unless you can't meet the lending criteria at the time of porting due to an unforeseen change of circumstance, probably linked to the unforeseen reason for wanting to port the mortgage........life has a habit of throwing you curve balls.
I've remortgaged more people off ten year rates than we've put on them............
But if you cannot meet the criteria to port that would apply to any mortgage product wouldn't it when moving?I've remortgaged more people off ten year rates than we've put on them............
Unless of course he fix for 10 is so much higher
Welshbeef said:
But if you cannot meet the criteria to port that would apply to any mortgage product wouldn't it when moving?
Unless of course he fix for 10 is so much higher
No, you may not meet THAT lenders criteria but may others......meaning you have no choice but to incur the ERC if you need to move home.Unless of course he fix for 10 is so much higher
The last three years has seen MMR in 2014 and ECD in 2016, all have changed the way lenders assess applications...........there will be plenty of people on here who took a mortgage pre-2014, wanted further lending or to port their mortgage only to be told that they do not meet the current lending criteria.
Who knows what the next ten years will bring with your circumstances, lending criteria and the economy?
Edited by Sarnie on Monday 3rd July 20:40
Sarnie said:
No, you may not meet THAT lenders criteria but may others......meaning you have no choice but to incur the ERC if you need to move home.
The last three years has seen MMR in 2014 and ECD in 2016, all have changed the way lenders assess applications...........there will be plenty of eople on here who took a mortgage pre-2014, wanted further lending or to port their mortgage only to be told that they do not meet the current lending criteria.
Who knows what the next ten years will bring with your circumstances, lending criteria and the economy?
That makes sense. The last three years has seen MMR in 2014 and ECD in 2016, all have changed the way lenders assess applications...........there will be plenty of eople on here who took a mortgage pre-2014, wanted further lending or to port their mortgage only to be told that they do not meet the current lending criteria.
Who knows what the next ten years will bring with your circumstances, lending criteria and the economy?
That said what is he 10 year mortgage offering like these days? Competitive/a lot more than 5 years? Etc.
Welshbeef said:
That makes sense.
That said what is he 10 year mortgage offering like these days? Competitive/a lot more than 5 years? Etc.
Had a quick look at HSBC and First Direct 10 year products at the weekend. Decent offerings but rates would still need to rise a fair bit to make it worthwhile. That said what is he 10 year mortgage offering like these days? Competitive/a lot more than 5 years? Etc.
As to your other point above, I would add to the other replies the possible changes in your own circumstances such as a redundancy, death of the main breadwinner, divorce etc
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