Good Mortgage DealsMortgages in good condition
A 10-year mortgage business is a fix too far?
for the next decade?" Woolwich introduced a new market-leading low interest rates - less than 3 percent for 10 years - this weekend. The mortgage provider, part of Barclays, has once again focused on longer-term business with this offering. Is it a good suggestion to be locked up in a mortgage for such a long time?
Would it be better if you switched to a short-term business? On the other hand, the benefit of having your mortgage secured is to know how high your payments will be for some period of your life in the near term. Theoretically, this means that you will be able to relax and be assured that your mortgage will be available for the duration of your festive business.
"Charlotte Nelson of money facts companyMoneyfacts said, "The constant flow of new 10-year fixed-rate deals gives borrower more choices than ever. Herr Hollingworth says borrower must keep in minds that most businesses demand that they be committed for the entire 10 years. SPF Private-Client' CEO Mark Harris also warned borrower to be cautious before registering for a ten-year period.
Mr Hollingworth points out that there are decades of agreements with fewer limitations. "The TSB and the Newcastle Banking Association, for example, have introduced 10-year interest rate caps that only bind the debtor for the first five years," he says. However, many creditors opt for short-term solutions, says Mr. Harris. "As five-year fixed interest rate levels have fallen recently - below 2 percent for those with 40 percent deposit - it is clear why creditors are so interested in catching them.
Their thinking is changing, but I am very pleased with the deal," Martyn Bridges and his wife are pleased that they were able to take out a 10-year fixed-rate mortgage when they purchased their new home. "All we wanted was a mortgage for 10 years, since I am now 52 years old and would like to be mortgage free until the moment I am 62, so there are no concerns about debts when I begin to think about my retire.
"£170,000 with Santander at only 2.94 percent, which is very reasonable for us," says Martyn, who resides in Bewdley near Worcester. "but since I assume floating interest will rise over this period, I'm very pleased with the deal."