Fixed for term mortgage

[ArianaG]

Our fixed mortgage deal soon comes to an end. We have searched all of the options and due to interest rates rising we will be paying around £150 per month extra.

We have seen fixed for term mortgages that mean you pay the same monthly amount for the duration of the mortgage therefore not affected by future interest rate rises. I find this reassuring and it is the same monthly amount as 5 year fixes.

The downsides that I can see are early repayment charges if you want to remortgage?

Has anyone got any advice or experience of this? We have 2 young dcs in childcare and I am concerned about rising costs.

Do people think that interest rates will continue to rise?

I always go for a fixed rate, I'd much rather know in advance what my repayments will be for the next 2 or 5 years. The only time an early repayment charge will come into play would be if you planned on moving in that time frame.

I'm not sure I would go for a fixed rate for the whole term though.

I have fixed mine again, I always do (5 years at a time) so I know exactly what the monthly repayments will be. The early repayment charge on mine is for if I sell the house not if I move. If I move I will just port the mortgage with me.

I would do fixed at the moment, interest rates are only going to go up at the time.

We have seen fixed for term mortgages that mean you pay the same monthly amount for the duration of the mortgage therefore not affected by future interest rate rises. I find this reassuring and it is the same monthly amount as 5 year fixes.

If this mean fixed till end or the mortgage how many years/.decades that could be - its the penalties and depending on time frame rates could come down - wouldn't expect that in next 5 years but 10-20 it's possible.

We fixed in our first house for 10 years - rates dropped a lot which was annoying but we'd have struggled if they'd risen. We thought it was forever house or at least till kids finished school - life had other plans for us and fixed then became an issue it did delay us moving with DH commuting back at weekends for few years,

We still fix but did two 5 years and next time maybe for 2 due to kids and school and possible moves being needed - but we can overpay by an certain amount which we have been doing so hopefully even with increased interest rates it will still be manageable amount by end of term around 4 years away.

So fixed yes - I prefer it as set amount each month but for how long depends on individual circumstances which can unexpectantly change.

Rates are going to go up - but if you fix for the lifetime of the mortgage and the lifetime is another 20 years, then rates will also probably go down.

You need to speak to a mortgage broker and get some advice.

Interest rates have been unusually low for the last fifteen or so years - the average rate outside of that timeframe is 5-6%, which is exactly why they stress test your finances up to that amount before they offer you a mortgage.

If you can fix below that amount, and are not planning to move in the next twenty years, then I would do so.