Can you get a long-term fixed rate mortgage?

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When you’re looking to get a mortgage, one important factor you will need to consider is what type of interest rate will be most suitable for your finances. Fixed rate mortgages are very common and there is a lot of variation in the length of time that you can fix them for. 

If you are looking for an overall cheaper mortgage, a shorter length could be the better option for you. Or if you want consistency in your payments for longer, an extended term such as a 10-year fixed rate mortgage might be the best choice. You can compare a range of fixed mortgages and see what will suit your financial circumstances best. Depending on your circumstances, you may be able to choose a mortgage with a rate fixed for any of the following:

·        One year or less such as 3 or 6 months

·        Two years

·        Three years

·        Five years

·        Ten years

·        Fifteen years

·        The lifetime of the mortgage (until you have paid it off in full)

Why get a 10-year fixed rate mortgage?

A 10-year fixed rate mortgage will come with an interest rate that won’t change for ten years, meaning the amount you pay each month should not increase for a decade. Even if the Bank of England base rate or your lender’s standard variable rate (SVR) goes up, your mortgage repayments will stay the same.

In the long-term, this can make budgeting a lot easier, particularly if you would struggle to afford your monthly payments if the interest rate went up. Also, you still have the option of overpaying to chip away at your mortgage quicker, if you have the money.

What are the drawbacks to a 10-year fixed rate mortgage?

The interest rate on a 10-year mortgage will more often start higher than other types of interest. This means that it may not be the best mortgage product for you because you could end up with a more expensive mortgage if variable interest rates stay the same or go down.

Also, your circumstances are more likely to change over time and you can’t change to a cheaper deal until the end of the 10-year term unless you are able to pay an early repayment charge. In some cases, this can be very expensive for example 3% of your overall mortgage balance.

How to find the best 10-year fixed rate mortgage

You can find the best 10-year fixed mortgage rates by checking:

·        The interest rate- which will affect how much your payments cost for the next 10 years

·        The loan to value (LTV)- i.e. the percentage of the property’s value that the mortgage covers

·        The fees and charges that you pay to take out the mortgage

You can use these mortgage deals to purchase your first home, get a remortgage, or move house.

Where can I find the best 10-year fixed mortgage rates?

If you have decided that a 10-year fixed rate mortgage is right for you, the next step is to compare the mortgage deals available on the market. How much you will pay will also be based on current mortgage interest rates and how expensive, or cheap, they are.

The best fixed rate mortgage for you will be the one you can comfortably afford over the complete duration of your mortgage, so you need to look at all the costs including any fees and interest payments. There is a lot of competition when it comes to mortgages, so make sure you compare both lenders and offers before you commit.

It is also advisable to speak to an experienced mortgage adviser, like those at Finance Advice Centre, to find the most suitable mortgage and interest rates as well as giving you the best chance of success with your application.

Can you get a 30-year fixed rate mortgage?

Not exactly, it is important to have clarity here. A fixed rate term applies to a period within the overall term of the mortgage. For example, you might take out a mortgage over a total of 30 years with a fixed rate term at the start of five years, meaning for the first five years of your mortgage you can enjoy the benefits of a fixed rate of interest. 

If at the end of this point you don’t switch to a different deal, the mortgage will usually go onto the lender’s SVR for the remaining 25 years of the mortgage. However, when that five-year fixed period is over, you will be able to look for another fixed term deal and keep doing so at the end of each fixed term period until you have repaid your mortgage in full.