Which to choose - a 5 or 10 year fixed rate mortgage?
When you commit to a 5 year fixed rate mortgage, or a longer term 10 year fixed rate mortgage, you will have peace of mind knowing that you won’t end up paying more for your home if interest rates rise over the term.
With a 40% deposit the best 10 year fixed rate mortgage is set at just 2.49%, which a) makes repayments low over 10 years and b) allows you to more accurately plan your living costs for a decade.
However, when fixing for such a long period it’s vital to opt for a product that you can port and take with you if you want to move home. Be aware that if you don’t, you could find yourself paying high early repayment fees and costs.
If 10 years just seems too long, then a 5 year fix may be a better option. The best 5 year fixed rate mortgage for those with a 10% deposit is currently set at 2.88%, for those with a larger 40% deposit the best 5 year fixed mortgage rate on offer is 1.99%.
To find out which lenders are offering the most competitive longer term deals call us at Deal Direct.
We can review your finances and circumstances to work out whether a 5 or 10 year fixed mortgage deal would suit you best.
We make a like-for-like comparison of all mortgages market-wide to work out the one which is best for your needs.
For no-obligation impartial advice and a low rate quote, call us today on 0800 048 8828.
