The Telegraph - Should you lock in to this 'Brexit-proof' mortgage?
Homeowners now have the option to lock into a fixed rate for 15 years, shielding them against any economic turbulence until 2034.
Aaron Strutt of broker Trinity Financial told The Telegraph that homeowners should bear in mind that locking into a 15-year mortgage is a “significant commitment.”
“It won’t be suitable for everyone. If you think you may move within the next 10 years or so, a shorter-term product would be much more suitable.” Someone who borrowed £200,000 using Virgin Money’s 15-year mortgage would have to pay a penalty fee of £16,000 to leave within the first five years.
Those with a bigger mortgage will find that the higher rates charged for a long-term fix translate into much heftier monthly repayments. He added: “The interest rates on a shorter fixed-term deal are much better. For example NatWest currently offers a two year deal with an interest rate of 1.28pc, while a 10-year fix from TSB charges you 2.29pc.”
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