Looking for a reliable repayment plan in a world of fluctuating interest rates? A fixed rate mortgage can fix the amount of interest you pay.
But with such security comes a commitment, and with such a long fix you may find it difficult to move home or remortgage until it’s run it’s course. Is a ten year fix for you?
A ten year fixed-rate is an unusual and lengthy mortgage product. With this you are locked into your mortgage for ten years, and during that period your interest rate will remain the same.
This means you’ll know exactly what you’ll repay for a decade. But, it’s difficult to move home during that period or remortgage without having to pay hefty exit penalties.
If you want to know exactly what you’ll pay for a decade, and are confident you aren’t going to move house then a ten-year fix could be right for you. They offer peace of mind for anyone worried about fluctuating interest rates.
But they are risky. Ten years is a long time to be tied into a mortgage deal, plenty could happen during that period that may lead to you wanting to remortgage. Also, you won’t benefit from being able to remortgage to a better rate as you repay your mortgage and owe less.
Think long and hard before locking yourself into a mortgage deal for this length of time.