How interesting with mortgages some of the longer-term fixed rates say for 10 years or more are actually lower than many of the shorter-term fixed rates.
With rising interest rates should we consider opting for a longer-term fixed rate? A long-term fixed rate does not give us the flexibility to make changes to our mortgage over the longer mortgage term. And reduce our mortgage. Also there are generally high redemption charges where you have a longer term fixed rate mortgage. With a long-term fixed rate mortgage you can usually take the mortgage with you when you move home.
So for those who are unlikely to need to make big changes in the next 10 years or so fixed rates at below 3% seem relatively attractive.
What’s crucial is that there is so much choice and variation in deals available – advice is vital to get the best option in place for your circumstances.
Trevor Downing FPMI FPFS
