Sep 04, 2014
Leeds Building Society have announced they are reducing their 10 year fixed rates but does this mean that fixing your mortgage for 10 years is a good idea?
The pros
- Security of payment – you’ll know exactly what you have to pay for the next 10 years
- A decade on a low rate could save you on the overall cost of your mortgage – most of which is made up of interest to the lender
- Interest rates haven’t been any lower – if now is not the time then when is?
The cons
- You will be tied into your deal, which means you will have to pay any early repayment charges which could cost thousands if you want to repay the loan earlier
- You could potentially miss out on a more competitive rate if the cost of fixed rates fall
- Fixed rates are generally more expensive than tracker or discount deals, but you pay for the security
Graham Lock, who covers our Hythe and Romsey branches, said “The new long term fixed rates are proving popular to customers given the ever changing market, regardless of what the house and mortgage market is doing having the peace of mind knowing what you will be paying for a mortgage longer term can have distinct advantages”
To take advantage of a long term fixed rate call us on 0800 612 8099