Fixing your mortgage for 10 years – is it worth it?

If you are someone who prefers to avoid risk then a longer term mortgage deal may make sense.

With news of mortgage rate increases, and an interest rate rise predicted for next year many home-owners are rushing to lock in for a long as they can.

So should you follow the trend - is a 10 year fixed rate mortgage worth it?

There are pros and cons to a long term fix, but with 10 year rates starting from 3.84% a longer term deal is worth considering.

With such a long term fix you know exactly what you are required to pay for a decade which allows for long term financial planning. No longer will you need to worry about interest rates or mortgage rate hikes, you are protected.

However mortgage security does come with a downside, and there are factors to consider before accepting an offer.

With a deal set for a decade you need to find out if there is an early repayment charge. This is an important point as a decade is a long time and a lot can happen, what if you want to move but find yourself facing massive penalties?

If there is an early redemption clause on the mortgage you want can it be transferred to another property? If it travels with you there is no need to pay an early repayment penalty.

When you lock in for 10 years you will see financial market changes. While you maybe pleased you locked in if rates rise, you might not be so pleased if you see rates fall.

If you decide this is the route to take then you need to accept that rates could lower, which means you may well be paying more for your home. However this maybe something you are happy to accept for mortgage security.

If you want to compare all 10 year fixes on offer Deal Direct can make a market-wide mortgage comparison on your behalf.

For impartial advice and a low rate quote call 0800 048 8828.