10 year fixed deal mortgage

[Froghat]

I’ve been quoted 4.63% for a ten-year fixed and the broker is recommending against it, saying the rate is too high and I should go for 5 or 2 year. Does anyone have any thoughts on fixing for this period? I know rates are never going to go back down past the low 3s and the long fixes are always going to be slightly higher. I’d be interested to know what others think.

We fixed at 2.18 for ten years in 2020- which obviously we are really grateful for that decision, I like knowing where I am, but I don't think I'd be fixing for ten years at the moment, though that rate doesn't sound awful, but it's a long commitment

We fixed in 2022 for 2.2% for 10 years and we’re glad we did.

I dithered too much (due to a possible move overseas & the ERP) & missed out on fixing at 2.13% ended up fixing for 5 years, about a year ago on 248%.

the ERP IS expensive, but I wanted a fixed rate for peace of mind.

I’m just reporting what the markets are forecasting 🤷🏼‍♀️

Markets don"t make "forecasts", they respond to changes in data, people who work for banks make forecasts (usually what the banks want the public to hear - i.e keep on spending and borrowing because things will go back to "normal" soon) The public don"t seem to be falling for it though, they can"t afford to.

What the markets are pricing in based on the data they have seen, is that better @CrashyTime ?

Slightly better, but it doesn"t help with the issue of experts (who in many cases work for the banks) pretending (in the articles you often post) that they have a magic telescope that can see base rate and mortgage rates in 2027. They want people to keep borrowing so they interpret and present market pricing in ways that suit their agenda.

I took 10 years at 3.2% 18 months ago. This will see me to the end of term and I can overpay to clear earlier, which I will do. I just don't trust the economy in UK so that makes me feel safer.

Good to see people are locking in low long term deals, very smart moves IMO.

I would have done the same at 3.2%. Just don't know at 4.6%. Arggh.

Nah that’s just your opinion which is biased in a certain direction I hope you will accept. You’ve come from the House Price Crash forum as you acknowledge & even highlight by your name. That is why you don’t like to see articles printed in mainstream media about the fact that the BoE base rate is widely expected to start falling from 2024 albeit modestly and no return to the ultra low mortgage rates of recent years we agree.

You keep going on about the articles I post like you don’t enjoy alternative views but people do have alternative views on Mumsnet it’s not the HPC website.

The HPC website is full of people posting property VI nonsense, it always has been.

It has a small number of people expressing alternative views but overwhelmingly attracts those that like the concept of a House Price Crash hence the title appealing to their target audience.

I fixed for 10 years last July ish at 4.89%. I finally managed to secure the mortgage in my own name (had a relationship breakdown, had to put my Dad on the mortgage and then moved my new partner in). Wanted the security of knowing this house is MINE and I can afford the payments. Yes the rate might drop but I won’t be particularly sad. I’ll be laughing if it goes up though.

I think you are going to be laughing.

We fixed for 10 years but when rates were much lower. In this market I would fix for 2 years, 5 years at a push and only where finances were really tight and I knew I couldn't afford any rate increase.

After 5 years you are likely to have a better LTV (if not already <60%) and rates are widely expected to have come down.

Good for you. Well done.

Have decided on 5 years at 4.24% and to overpay by a good every month - a third more of the monthly repayment on top.

Don't forget your Broker gets a fee every time he or she signs you up to a new deal, so they won't be keen on ten years because it means less repeat business.

A broker doesn’t choose a mortgage for their clients though, they just present them with the best options they can find & you normally get asked if you want a2,3, 5 or 10 year fixed ( or tracker but these less popular).

10 year mortgages have never appealed to me partly because we’ve moved around a lot and don’t tend to stay somewhere that long. And no broker has ever tried to push one on us, they have been guided by what we have said we are interested in.

Seems a decent rate & obviously great if you can afford to overpay to bring the term down.

Swap rates predict deals will be around the 3.5% mark in 2 years' time. Depending on the dates and fees available to you I'd look at 2 year deals ideally and then 5 year. You have to do some sums.

The office for budget responsibility predicts that the BoE base rate will be around 3.8% by the end of 2025 and 3.5% by 2027. But even assuming the base rate is falling shortly, fixed term mortgage rates are almost always a bit higher than the base rate.

I’m not disagreeing with you that a 2 or 3 year deal could work out better than a 5 year deal btw @BeretInParis

Though I know a lot of people value the financial certainty of knowing exactly what their repayments will be for a longer period of time.

I didn't take it that way at all @Twiglets1! Thanks for clarifying. :)
Just offering another thought into the mix.