Lifetime fixed mortgage with Kensington?

[B1pbop]

Never knew this was a thing, but I was looking on Money Supermarket at mortgage rates and came across this lifetime fixed product where interest is fixed for the whole term. This company Kensington offer up to 40 years fixed - quote 4.15%. I googled them and seems it’s a fairly new venture.

So is this a good idea? Does anyone have any experience of Kensington? In the current climate and in view of mortgage rates having been very unusually low in recent years I can’t think why this wouldn’t be a great idea to go for, as I’m an anxious creature and love security. I understand I could make 10% overpayments and can pay off without penalty in the event of death/moving etc. Currently the quote for the same term is £100 (27%?) more than I pay now on £93k mortgage, so that doesn’t seem huge for the long term security. But am I missing anything?

wouldnt touch with a barge pole in current climate

Kensington have been around for years- they specialise in lending to people with poor credit at inflated prices. Would suggest you have a search on the MSE forums.

This 👏 i feel the same. 40 years is a very very long time to fix intrest rates will fluctuate i would fix for 5.

If you can afford that payment then I dont see the issue. It won't change if rates do go down but as long as you know you will always pay that same amount then I would be happy with that if I knew I could pay it

@GoldenOlden thanks, will have a look

@Doingprettywellthanks why not though?

@Mummy2mybear the quote is less than 5%??

Sorry I did not explain very well, I would fix for 5 years maximum in current climate although everyone's circumstances are different.

@GoldenOlden I meant from what I’ve read this product type (long term fix) is fairly new, not the company.

@Mummy2mybear okay thanks, so why would you not touch with a barge pole?

So is this a good idea?

If interest rates go above 4.15% then it's a good idea.
If interest rates go below 4.15% then it's a bad idea.

What are the penalties or get out costs should you need or want to move?

That's often the main factor in not fixing. I went for a 10 year fix a couple of years ago because we are very unlikely to move in that time frame with kids schools etc.

I wouldn't be sure about 25 years time as many more variables.

What is the early repayment charge? 60k interest on top of 90k loan seems huge! If you can overpay 10% every year, you would not need 27 years to be mortgage free, what is the terms for this?

They say you can overpay up to 10% a year. No ERC if you port to a new house or pay it off early. Only pay an ERC if you change mortgage product with Kensington or move the mortgage to another product. Can apply for additional borrowing.

So I guess the only restriction is finding a house that meets their lending criteria if I wanted to move. Wonder what their criteria is! Hopefully normal though.

60k interest on top of 90k loan seems huge!
no different to any other mortgage though?

If interest rates go above 4.15% then it's a good idea.
If interest rates go below 4.15% then it's a bad idea.
well obviously. But in the scheme of mortgage rates in the last 20 years it’s not too bad a deal for the peace of mind I think? I value predictability quite a lot though, sometimes too much perhaps!

Thanks for all views. I don’t have anyone to talk with this stuff about in real life apart from seeing a financial adviser so just value being able to bounce off people.