Call us today: 01722 322683


Archive: More people fixing their mortgages longer

(Written on 4th August 2022) Latest figures show that the number of people fixing their mortgages for longer periods is soaring. Here, Adam Nanson from Your Mortgage Expert discusses the benefits and downsides of fixing your rate for longer periods:

increase base rate

Why are people fixing their mortgages for longer?

“Since December, the Bank of England has increased the base rate five times in a row. The base rate is at 1.25% after the Bank of England voted to increase it again on 16th June up from 1%. The aim of rising interest rates is to cool rising inflation.

“The base rate sets the level of interest that the commercial banks charge us on mortgages. A higher interest rate means that the amount you pay on a new mortgage deal will increase. As a result, more of our clients are speaking to us about fixing their mortgages for longer periods in order to protect themselves from future rises.

Advantages of fixing your mortgage for longer

“You can fix your mortgage for 2 years up to 10 years. The main advantage of a long-term fixed-rate mortgage is that you’ll know exactly what you will pay every month for your mortgage for a set period. So, if you fix for 10 years, your mortgage payments won’t change regardless of whether the base rate rises or falls. Many of my clients like the peace of mind this gives to them and also helps with their budgeting.

“There can also be costs associated with remortgaging. Such costs include legal fees, valuation fees and arrangement fees. So committing to a longer term deal could mean you benefit from not paying these fees every two years of so.”

Disadvantages of a long term fixed rate

“In order to fix for a longer period such as 10 years, you have to fairly confident your circumstances aren’t going to change. Your lender will charge you an early repayment charge if you need to exit your mortgage early. So, if your circumstances change and you can no longer afford your mortgage or if you decide or need to move house, your lender will charge you to exit your mortgage early. The early repayment charge could be several thousands of pounds.

“We therefore always advise clients to look at how much the early repayment charges are. And also to check whether their mortgage is “portable”. So whether you can take it with you to a different house.

“Added to this, longer term fixed rate deals generally are more expensive than shorter term deals. Choosing a seven or ten-year fix means you’ll generally pay a premium for the peace of mind of a long-term deal. It also means you could also end up paying more than you need to if interest rates were to fall again.

“If you are fixing your mortgage deal for a longer period of time, we would advise you to seek advice from an impartial mortgage broker. We will take the time to review your circumstances, look at all the mortgage products available to you and we will also provide you with extensive calculation as to how much each option will cost and illustrations of how much you could save.”

If you are interested in having a no obligation chat about your mortgage, why not get in touch? We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.

Contact us

"*" indicates required fields

Monday to Friday: 9am – 5.00pm, Saturday and Sunday: Closed

We will use your name, email address and contact number (‘personal information’) to contact you about the services you have requested or respond to an enquiry you have submitted, which will require us to share your personal information with financial institutions who can assist in the provision of financial services to you including product providers, lenders, banks, insurers, fund managers, platform providers and third party para-planners. For further information on how your information is used, including disclosure to third parties, how we maintain security of your information and your rights in relation to the information we hold about you, please see our Privacy Policy:

Your Mortgage Expert is a trading name of Your Mortgage Expert Limited which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.

Registered Office Address: 18 New Canal, Salisbury, England, SP1 2AQ. Registered in England Number: 08924507.

Sorry to see you go

Please note, by clicking on the link you will be departing from the regulated site of Your Mortgage Expert Ltd. Neither Your Mortgage Expert Ltd nor Mortgage Advice Bureau are responsible for the accuracy of the information contained within the non-regulated site.