Should I fix my mortgage for 25 years?

"The Easy Way to Get Your Best UK Mortgage"

About Us

Your Privacy

Tip Our Charity

This website is Approved by Cradon Investments Ltd Authorised and Regulated by
the Financial Services Authority FSA No: 300505

TrustGuard

Mortgage Guide
Click for Full Contents

Types Of Mortgage
Click for Full Contents

Should I fix my mortgage for 25 years?

The Chancellor announced recently that he wants mortgage lenders to offer more long-term deals.

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

But Chancellor Darling and Prime Minister Brown believe that if more lenders offer to fix borrowers interest rates and, therefore, their monthly repayments for between ten and 25 years, more people will find they can afford to climb on the property ladder.

At the moment, 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 fix.

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

See your Full Guide to Fixed Rate Mortgages UK

To read more on this subject please see the list below or your mortgage guide or your home buying guide

Read enough? Just want a quote? To get your best mortgage quote quickly and easily we can put you in contact with a recommended mortgage adviser. It's free, completely confidential and there's no obligation at all. Simply fill out the form below


Value of Property	£
		(eg 125000)

Borrow How Much?	£
		(eg 92500)

Your Mortgage Type

First time buyer?		Yes No
Have you found property?		Yes No
Country

Sorry ! The amount you want to borrow is less than £25,000. This is the minimum allowed for a mortgage. But don't worry! You could get the money via a personal loan. I want a free no obligation loan quote Click OK No thanks. I will change my borrow amount to more than £25,000 Click Cancel