10 year Mortgage @3.5%?
Discussion
I'm far from an expert, and look forward to seeing more knowledgeable replies, but I think I'd be tempted to go for that. I'm approaching the end of a 5 year term at 2.34%, and with the uncertainty in interest rates going forward, would happily go for a guaranteed 3.5% for 10 years. I've not looked to see what alternative rates are available for shorter terms though.
dibbers006 said:
Hmm, why is my own Lender (Coventry) only offering me in the 3%s 
Possibly because they can. Transferring to a different provider is a pain. Will require conveyancing and the added costs that entails. I'm with Coventry as well, do they offer a lower rate online as a new business? Moving house shortly, we took a 10 yr fixed rate which will see us to mortgage free at 2.2%. Was all agreed in november before the rates went up.
We were offered all sorts of better rates for shorter fixed rates and trackers etc. but i like knowing how much i'm going to be paying every month.
Might cost me a few extra quid or save me a couple but peace of mind is more important.
We were offered all sorts of better rates for shorter fixed rates and trackers etc. but i like knowing how much i'm going to be paying every month.
Might cost me a few extra quid or save me a couple but peace of mind is more important.
Different strokes for different folks but a 10 year fix at 3.x% seems on the highside for me. 10 years is a long time.
Although if you are the type of person that is happy to have paid 2.34% for the last five years as the second poster is when everyone else has been paying <1% , then maybe it is a good deal.
Personally, I try to pay the least amount of money (and am prepared to take the interest rate risk) and I reckon a shorter deal at a lower %age is still the right choice compared to a long fix. Over the last 20 years or so, Because of this, I reckon I am thousands up compared to the fixers of this parish.....
Although if you are the type of person that is happy to have paid 2.34% for the last five years as the second poster is when everyone else has been paying <1% , then maybe it is a good deal.
Personally, I try to pay the least amount of money (and am prepared to take the interest rate risk) and I reckon a shorter deal at a lower %age is still the right choice compared to a long fix. Over the last 20 years or so, Because of this, I reckon I am thousands up compared to the fixers of this parish.....
fat80b said:
Different strokes for different folks but a 10 year fix at 3.x% seems on the highside for me. 10 years is a long time.
Although if you are the type of person that is happy to have paid 2.34% for the last five years as the second poster is when everyone else has been paying <1% , then maybe it is a good deal.
Personally, I try to pay the least amount of money (and am prepared to take the interest rate risk) and I reckon a shorter deal at a lower %age is still the right choice compared to a long fix. Over the last 20 years or so, Because of this, I reckon I am thousands up compared to the fixers of this parish.....
The last 20 years we've been in a market of cheap easy to get loans , this seems to be coming to a end .Although if you are the type of person that is happy to have paid 2.34% for the last five years as the second poster is when everyone else has been paying <1% , then maybe it is a good deal.
Personally, I try to pay the least amount of money (and am prepared to take the interest rate risk) and I reckon a shorter deal at a lower %age is still the right choice compared to a long fix. Over the last 20 years or so, Because of this, I reckon I am thousands up compared to the fixers of this parish.....
dibbers006 said:
rustyuk said:
10 years is a long time to be locked into a Mortgage.
Won't I be locked into it until retirement anyway?Early get-out clause seems to be the only 'risk'.
Everyone is different but I've not lived in a house yet for 10 years.
Edited by rustyuk on Wednesday 9th February 16:52
dibbers006 said:
Sheets Tabuer said:
Lloyd's are doing 1.6 for 10 years
Hmm, why is my own Lender (Coventry) only offering me in the 3%s I remortgaged last year with lloyds and took the 5 year 1.4% option as I only have 6.5 years to go on mine.
egor110 said:
The last 20 years we've been in a market of cheap easy to get loans , this seems to be coming to a end .
maybe, maybe not - that is the gamble that we are being asked to make. An alternative view could be that if Lloyds or whoever are offering 3.5% over 10 years, then they think they can make a profit on this and "on average" over the 10 years, it might well be less.....
I personally believe that we will see a rises in the next few quarters and then it'll be dropping again to stay low again. But as above, when it comes to mortgage rates, I'm a gambler and not a a steady Eddie
fat80b said:
Different strokes for different folks but a 10 year fix at 3.x% seems on the highside for me. 10 years is a long time.
Although if you are the type of person that is happy to have paid 2.34% for the last five years as the second poster is when everyone else has been paying <1% , then maybe it is a good deal.
Personally, I try to pay the least amount of money (and am prepared to take the interest rate risk) and I reckon a shorter deal at a lower %age is still the right choice compared to a long fix. Over the last 20 years or so, Because of this, I reckon I am thousands up compared to the fixers of this parish.....
Doesn't that depend on the fees charged for taking out a new mortgage every couple of years and the size of the balance of the mortgage left to pay though? Although if you are the type of person that is happy to have paid 2.34% for the last five years as the second poster is when everyone else has been paying <1% , then maybe it is a good deal.
Personally, I try to pay the least amount of money (and am prepared to take the interest rate risk) and I reckon a shorter deal at a lower %age is still the right choice compared to a long fix. Over the last 20 years or so, Because of this, I reckon I am thousands up compared to the fixers of this parish.....
We looked at moving our tracker to a fixed and the fees involved were more than the interest saved over the three year term. I reckon I've saved over the past 20 years by sticking with a cheap tracker rather than continually remortgaging
fat80b said:
Different strokes for different folks but a 10 year fix at 3.x% seems on the highside for me. 10 years is a long time.
Although if you are the type of person that is happy to have paid 2.34% for the last five years as the second poster is when everyone else has been paying <1% , then maybe it is a good deal.
Personally, I try to pay the least amount of money (and am prepared to take the interest rate risk) and I reckon a shorter deal at a lower %age is still the right choice compared to a long fix. Over the last 20 years or so, Because of this, I reckon I am thousands up compared to the fixers of this parish.....
I am that second poster, and thought that was a reasonable deal 😬 - was a first time buyer with a 15% deposit over a 25 year term. Although if you are the type of person that is happy to have paid 2.34% for the last five years as the second poster is when everyone else has been paying <1% , then maybe it is a good deal.
Personally, I try to pay the least amount of money (and am prepared to take the interest rate risk) and I reckon a shorter deal at a lower %age is still the right choice compared to a long fix. Over the last 20 years or so, Because of this, I reckon I am thousands up compared to the fixers of this parish.....
Coming up for renewal in November, and keen to be mortgage free asap. Will owe about 70k at renewal.
RoadToad84 said:
I am that second poster, and thought that was a reasonable deal ??
It probably was a reasonable deal, and I would guess most first time buyers elect for a fixed deal for very sensible reasons, but as salries increase and attitude to risk changes then boyse7en said:
I reckon I've saved over the past 20 years by sticking with a cheap tracker rather than continually remortgaging
as we can see, there's an alternative and my point is that you need to take all of this into account to work out if being a Steady Eddie fixer for life (which in the last 25 years would have meant paying more than you needed to) is the right answer......
Just about to complete the paperwork on a re-mortgage with our current lender Coventry for 5 years @ 1.35%. A 90 minute inquistion - why do you want to fix, what do you think will happen to interest rates, why do you think that will that happen etc. etc. Felt like saying at one point that I just want a mortgage love, I'm not applying for Andrew Bailey's job.
We did a big step up when we moved in September, and one of the things that was important to me was that we knew what our costs would be (as far as possible) for a reasonable period. That meant a 3yr fix on gas and electric, and a 5yr fix (at 1.2%) for our mortgage. At that rate it felt like a no brainer to me, but 3.5% over 10 years is a long time to commit to paying something that is currently extremely uncompetitive, in the fear or expectation of a a significant (and sustained) rise in rates.
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