Mortgages - Help!

[TabClear]

You need to beware of the longer term deals if there is a chance you need to get out of the deal early. We fixed for 5 years a couple of years ago but need to switch providers now as we are putting on a large extension and our current bank don't offer finance for this.  Its costing almost 5k to get out of the deal.

I take it a personal loan with your existing bank is not an option for 5 years say for the extension? I assume the extra £5k is getting rolled into the remortgage and repayable over a longer period but it is a serious amount of dough to payout to break the deal, especially if there is only 3 years remaining.

[awideisneverasgood]

No, the extension is quite sizable so we basically need a self build mortgage for it.  When we took out the 5 year fixed, our plan was to move and port the mortgage if needs be but things changed.

[TabClear]

No, the extension is quite sizable so we basically need a self build mortgage for it.  When we took out the 5 year fixed, our plan was to move and port the mortgage if needs be but things changed.

Ah right, thought that after I wrote that that the loan option only works for a relatively small amount. Same thing happened me a few years ago, a plan to move turned into an extension for a playroom! 

[Kidder81]

So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon

[clarshack]

So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon

get 10 year fixed if you know you won't be getting divorced or have to sell your house for some other reason as it will really cost you to come out of the deal.

[Kidder81]

So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon

get 10 year fixed if you know you won't be getting divorced or have to sell your house for some other reason as it will really cost you to come out of the deal.

Yeah won't be moving or paying it off in that time period, hopefully not divorced either 

[trailer]

So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon

get 10 year fixed if you know you won't be getting divorced or have to sell your house for some other reason as it will really cost you to come out of the deal.

Yeah won't be moving or paying it off in that time period, hopefully not divorced either 

I think fixing is a safe bet at the minute.

[Kidder81]

So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon

get 10 year fixed if you know you won't be getting divorced or have to sell your house for some other reason as it will really cost you to come out of the deal.

Yeah won't be moving or paying it off in that time period, hopefully not divorced either 

I think fixing is a safe bet at the minute.

Yeah I'm gonna fix, just a question of 5 or 10 years

[trailer]

So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon

get 10 year fixed if you know you won't be getting divorced or have to sell your house for some other reason as it will really cost you to come out of the deal.

Yeah won't be moving or paying it off in that time period, hopefully not divorced either 

I think fixing is a safe bet at the minute.

Yeah I'm gonna fix, just a question of 5 or 10 years

10 seems a very long time. But could be a smart move.

[gallsman]

Took out my mortgage over here last year. Fixed for first year at 1.79% and then Euribor + 0.89 after that. As recently as March I'd have been saving 200e a month. In the end my new rate works out at 1.73% and I'm saving a whopping 5e a month 

There's a bank offer here that will fix for 5 years at 0.95 and then move to Euribor + 0.69. Am strongly considering it even though I'd have penalties for early amortization in the first two years.

[markl121]

I fixed mine last month at 2% for the next five years. I figured it's worth the extra 0.1% or whatever it was compared to doing 2-3 years and ending up with a shite rate down the road

[marty34]

Rates will have to go up a good bit if they want to curb inflation....a good bit.

So a good idea to fix.

[Hound]

Many banks will really screw you if you decide to sell before the end of the fixed term, so that's the big thing to think about if fixing long term. Otherwise it would seem sensible to fix now if you can get a good rate.

In my mortgage getting days, I fixed half of it and variable for the other half, so whatever happened to interest rates I was always half right and half wrong! I also liked to have the option of using some of my bonus to make an extra payment on the mortgage - which you can do with a variable but not with a fixed.

[brokencrossbar1]

We have just over a year left on a 5 year fixed rate. We were thinking of rebroking with the bank early but will cost a few thousand in redemption charges. Do people thinks rates will change that much over the next 12 months?

[RedHand88]

We have just over a year left on a 5 year fixed rate. We were thinking of rebroking with the bank early but will cost a few thousand in redemption charges. Do people thinks rates will change that much over the next 12 months?

Have read bank of england base rate will probably be 3% by early next year, it's 1.75% at the moment.