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Dannie Noarh
Posted: 13 February 2023 14:56:02(UTC)
#15

Joined: 01/02/2023(UTC)
Posts: 3
Hey there! Deciding on the length of a fixed mortgage deal can be a tough call. It sounds like you're weighing your options between a 5-year and 10-year fix. In the current market, both rates seem reasonable but the 10-year fix does come with added risk from early repayment penalties. As a Mortgage Advisor Leeds, I'd be happy to chat with you and go over your options to help make the best decision for you. Good luck!
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MarkSp
Posted: 16 February 2023 19:51:35(UTC)
#16

Joined: 02/02/2020(UTC)
Posts: 2,191

I took a 3 year fixed in the summer
I doubt we will get back to 2.77% but it wont be 5.95 either
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John Bran
Posted: 11 March 2023 11:13:22(UTC)
#17

Joined: 01/09/2017(UTC)
Posts: 2,134

Thanks: 1097 times
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Mr_Jimbo;247030 wrote:
Hi All,

My 2 year fixed mortgage deal is due for renewal in early 2023 so I’m currently trying to find a new deal. I’m obviously kicking myself I didn’t opt for a longer term fix when rates were much lower. However now I’m trying to learn from my mistake and go for a longer fix.

My broker has sent me both a 5 year fix and a 10 year fix to review. They are similar rates (5.4% vs 5.1%). For those on the forum in a similar situation, what length of term are you opting for? I realise this question is essentially a bet on future rate hikes and whether the BoE holds its nerve in the face of recession.

Although both quoted rates are higher than we have seen over the past 5-10 years, historically they don’t seem too bad. Obviously the 10 year fix has higher penalties for early repayment which is an extra risk to consider.

Thanks



I can assure you interest rates will fall .....after they have risen a bit more. You may MAY just be around where they will settle or maybe not. My daughter is in charge of mortgage brokers. She always tells people to think twice about taking out 10 year mortgages as the fees for closing early are so high. Divorce moving etc make it risky. If you can port it maybe. But I would be mighty worried of interest rates falling if it was me. Very.
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Raj K on 09/04/2023(UTC)
MarkSp
Posted: 26 March 2023 09:02:57(UTC)
#10

Joined: 02/02/2020(UTC)
Posts: 2,191
Newbie;247052 wrote:



"Lenders criteria can change overnight" - that I am aware of and accept, as is the fact that affordability and LTV needs to be assessed again at time of porting, but the above issue is a new one which I came across in over multiple decades of trading in properties.


On the BARC mobile App I was getting an advert offering me a £20k loan pre-approved. Click here to complete.
that offer is still there but it is now £4k

:)
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Strangways
Posted: 26 March 2023 21:43:35(UTC)
#18

Joined: 23/12/2020(UTC)
Posts: 565

Thanks: 1621 times
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John Bran;260249 wrote:
I can assure you interest rates will fall .....after they have risen a bit more. You may MAY just be around where they will settle or maybe not. My daughter is in charge of mortgage brokers. She always tells people to think twice about taking out 10 year mortgages as the fees for closing early are so high. Divorce moving etc make it risky. If you can port it maybe. But I would be mighty worried of interest rates falling if it was me. Very.

I took out a 10 year fixed rate mortgage at 2.7% in June. I didn't have to think twice.
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Raj K on 09/04/2023(UTC)
Peter1598753
Posted: 30 March 2023 09:29:37(UTC)
#21

Joined: 12/05/2021(UTC)
Posts: 6
Things may well have changed since, but when I took out a 10 year BTL fixed rate in 2019, the early repayment penalties were something like 7% - 5% for the first 5 years and then just 1% from year 5 onwards, so not really an obstacle from year 5 on (particularly if you factor in the fees for otherwise moving deals every 2-3 years).
In addition, most fixed rates provide the ability to repay 10% each year without penalty.

That said, the rate at the time was 2.75% so a no-brainer in my view. Would I fix for 10 years today if the rate was 5+%, probably not - or probably not on all of the borrowing. Would I fix for 10 years today if the rate were 4% - yes I probably would, but again, possibly not on all of it.
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Max Bezm
Posted: 15 December 2023 23:47:40(UTC)
#20

Joined: 18/03/2023(UTC)
Posts: 56
Strangways;262282 wrote:

I took out a 10 year fixed rate mortgage at 2.7% in June. I didn't have to think twice.

Good deal! I also wouldn't think twice.
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Newbie
Posted: 16 December 2023 02:03:40(UTC)
#19

Joined: 31/01/2012(UTC)
Posts: 3,818
Strangways;262282 wrote:
John Bran;260249 wrote:
I can assure you interest rates will fall .....after they have risen a bit more. You may MAY just be around where they will settle or maybe not. My daughter is in charge of mortgage brokers. She always tells people to think twice about taking out 10 year mortgages as the fees for closing early are so high. Divorce moving etc make it risky. If you can port it maybe. But I would be mighty worried of interest rates falling if it was me. Very.

I took out a 10 year fixed rate mortgage at 2.7% in June. I didn't have to think twice.

Who was the lender ?
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NoMoreKickingCans
Posted: 16 December 2023 08:44:25(UTC)
#24

Joined: 26/02/2012(UTC)
Posts: 4,470
Quote:
I took out a 10 year fixed rate mortgage at 2.7% in June. I didn't have to think twice.

They are talking about June 2022 - 18months ago.

Swap rates now and therefore fixed mortgage offers currently falling. I have to look at my options soon too. Reluctant to pay it off completely for several reasons. Looks like 5 year rates could hit 4%, not much more than the 5 year gilt yield.

Unsure of lenders attitude to lending to pensioners though.

From that bible of financial authority - the Sun...
https://www.thesun.co.uk/money/2...relief-fixed-deals-fall/
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Lex Further
Posted: 16 December 2023 14:08:00(UTC)
#25

Joined: 18/09/2021(UTC)
Posts: 181
Good to know! The prospect of taking out a mortgage in the next two months is an exciting step. To ensure a smooth process, I've been researching potential mortgage providers, and based on the positive feedback I've come across in PHH Mortgage reviews, it seems like they do a great job. It's reassuring to hear about positive experiences from others who have navigated the mortgage process with this company.
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