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Would you take out a ten year mortgage?

(7 Posts)
TK1930 Sat 10-Jan-15 21:17:14

Just wondered if people would be keen on taking out a 10 year mortgage. Woolwich have one advertised at 2.99%. We were looking at fixing for 5 years at 2.5% so there's not a mega difference.... And surely interest rates can only rise over the next ten years??
Thanks in advance ;-)

P.s. Tracker/variable is not feasible for us at the moment as we need to be sure of our outgoings

ajandjjmum Sat 10-Jan-15 21:18:58

I would. We have a mortgage with the Woolwich, never had any problems with them.

UniS Sat 10-Jan-15 21:20:41

We have one. I suited our plan to be mortgage free by time child leaves school, suited the amount we could pay each month and suited our fairly low loan to value ratio.

Won't work for every one , but will work for some.

firsttimekat Sat 10-Jan-15 21:23:53

I would, with a fixed income over the next few years with maternity leave and reduced hours I think it's sensible to be able to fix your outgoings and plan ahead even if you end up paying slightly more.

BumWad Sat 10-Jan-15 21:24:14

At 2.99% it sounds like a great deal. As long as you were sure you didn't want to move/downsize/rent etc in that time. Although most mortgages are portable these days so may not be a problem.

Unlike friend of mine who got a 10 year mortgage just before the crash at 6.99%. Woops.

TalkinPeace Sat 10-Jan-15 21:26:26

How much is their best rate tracker?
How much more are you willing to pay for "security"
as against being able to pay the extra money into a rainy day fund of your choosing
6 x base seems high to me for 10 years

Mumoftwoyoungkids Sun 11-Jan-15 20:02:53

what Talkin said. (Although 2.99% is not bad at all - we were paying 2.29% on our variable and that was on a special deal for people with over 50% equity.)

Also worth thinking about:-

What is the setting up fee (can be thousands. Divide by 120 to give how much extra it is costing you per month.)
Any fees if/when you pay off?
Can you overpay without penalty? (Even if that seems unlikely that upu'd want to now, in 10 years your finances could be very different.)
What if you want / have to move? 10 years is a really long time. Redundancy? Relocation? A surprise baby? Sick parents? Death of one of you? Inheritance?

Having said that - a decade of being free from worry re: interest rates is a big deal.

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