is a 10 year fixed rate mortgage at 5.08% a good deal?

Answer 1

The rate sounds good but that is a huge period of time to sign up for.

If the mortgage is portable and you can therefore take it with you if you move to another property it maybe isn't so bad, but you would have to carefully check the penalties etc of ending the mortgage early which is likely to cost you thousands of pounds to do so.

Answer 2

NO. Do not tie yourself in to any mortgage for longer than 3 years. Things change and so might your mortgage requirements. The penalties on a 10 year deal will be huge if you change your mind and want to sell your house in 3 or 4 or 5 years. The rate will always be good on 10 year deals, they will penalise you heavily if you change your mind (which is very likely). Rates depend on your credit score and circumstances so nobody can say if its a good rate for you but it isn't a high rate.

Good Luck

Answer 3

its a very good rate but i wouldnt tie into it, like others advise the tie in clauseor early redemption penalty will be massive and would it really be so fantastic if for some reason the base rate dropped down to it was a few years ago at less than 4.00%?

if its protable and u plan on if then yea, but with some banks if you threaten to leave they have a specialist dept that might be able to change your rate without chargin u the full penalty or any of the penalty.

rates arent always on your rate unless things have changed it depends on the amount u need to borrow, ie your LTV (loan to value) some banks do it on your credit score tho u have to shop round.

Answer 4

Yes. With the way things are at the moment, that's reasonable.

However, bare in mind that if your circumstances change (eg. you have child and want to stop working) you won't be able to change your mortgage to interest only for a year or two, without paying a huge fine anyway.

There's a lot of uncertaintly at the moment, so in my opinion, fixed rate is the way to go.

Answer 5

Sounds like a good deal particularly as rates are rumoured to be on the increase. Just watch out for early repayment payment penalties.

Answer 6

Looks good on the face of it - what are the hidden charges ie. Are you likely to move or adjust the mortgage in the 10 year period, are there any penalties?

Answer 7

i think so. as the rate is good at the moment and most likely to increase it's sensible to fix for that length of time, especially if you have no room for manouver.
Only think to think of is how much you mortgage will have increased in 10 years time. If it goes up £100 but your wage doesn't go up with the rate of inflation you might struggle.
I've just fixed mine for 5 years and am really happy with that.
It's inevitable it'll go up shortly, how much we don't know, so it can only be better to fix it before it does.

Answer 8

The rate is very good, however 10yearfixed is extreemly high... you need to check to see if there is a get out clause... like a fee if you want to leave as if they are asking for 10 years they are trying to trap you so you will prob have a get out fee of about 5k

Answer 9

they are going to deliver you a letter to tell you that your mounted fee era is ending, some million month in the previous. you will settle for a decision between yet another mounted loan for a volume of time, or a variable one, the fee would be distinctive. meaning that whether you decide on for yet another 5 years mounted, you could finally end up paying better than what you pay on the 2nd

Answer 10

Not over a 10 year period.