Should I Fix My Mortgage for 25 Years?

Most mortgage deals with interest rates that are fixed or discounted last for two to five years.

At the time of writing, out of the thousands of UK mortgage deals, fewer than 150 are fixed rates lasting ten years or more.

 

And there’s a good reason for this.

Most people realise that signing up to a deal this long is a very big risk.

It could turn out to be an extremely shrewd move if interest rates generally continue to rise, as those with variable rate mortgages and short-term fixes will be forced to bear repayments that follow suit.

But no one can say for sure what direction interest rates will take. (For more on this, read What will happen to interest rates?)

If they fall significantly, someone with a long-term fix could be stuck paying well over the odds for decades to come.

The only alternative would be to cough up a huge early redemption penalty to get out of the deal.

If you still think a ten or 25-year fix is worth considering, go to The dangers of a 25-year mortgage fixed deal.

If, on the other hand, you would prefer something more conventional, visit What length of deal should I choose?

 

 

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