| It is common for people to compare mortgage deals | | | | market. However, long term fixed rate deals have |
| over 25 year terms. The actual length of your | | | | been around for some time and are not the most |
| mortgage can be more or less than this, but it seems | | | | popular of those available. |
| to be the starting point. Halifax has just brought out a | | | | For instance, there can be long tie in periods. In this |
| mortgage deal that is fixed at 6.39% for 25 years. | | | | case with Halifax, you will face an early repayment |
| There are restrictions as to who can borrow on this | | | | charge of 3%, if you pay back your mortgage within |
| deal, and there are other lenders who offer long term | | | | the first 10 years. That could be a significant penalty if |
| fixed deals. But just imagine taking out a fixed rate | | | | you took out this deal and had to end it early. To take |
| deal and never having to remortgage again! It sounds | | | | out a long-term deal like this you would have to |
| excellent. | | | | seriously consider what the future holds for you in the |
| With five interest rate rises in the last year, you might | | | | long run. This could be extremely difficult. Consider the |
| be concerned about the impact of future increases. | | | | first time buyer at the start of so many journeys: a |
| The Monetary Policy Committee decided not to raise | | | | career, a relationship, a family - never mind property |
| the base rate this month, but historically rates are still | | | | ownership! |
| low. | | | | If the security of a fixed rate mortgage appeals to |
| According to the Bank of England's website; in the 80s | | | | you, you must consider how long you can commit |
| the base rate was never below 8%, and in the 90s | | | | yourself to one mortgage provider. |
| never below 6% but was often much higher. | | | | How likely is it that your employment status, your |
| There is always the possibility that rates will go up as | | | | family and social circumstances will remain |
| well as down, so why doesn't everyone take out a | | | | unchanged? Always remember, what represents a |
| long-term fix? The Halifax deal is portable, which | | | | good mortgage deal for some people might not be a |
| means you have the option of moving house and | | | | good deal for you. A good mortgage adviser will help |
| keeping the same deal, subject to certain criteria being | | | | you determine what the most suitable deal types are |
| met. Long terms deals like this have some attractive | | | | by asking you the right questions. |
| features that will appeal to many borrowers in the | | | | |