Lifetime Fixed Mortgages to launch in UK

Richie · 10 Mar 2021 at 16:52

Habito are set to release Fixed Rate mortgages with terms upto 40 years.

https://www.habito.com/one

https://www.theguardian.com/money/2021/mar/10/uk-40-year-fixed-rate-mortgage-haibto-deposit-loan

I ran through the questions posed and it looks like they will allow

Mortgage Porting for moving home
Overpayments to clear mortgage early
No ERC penalty

The rates are obviously a bit higher than current rates (rate you get is dependant on initial LTV and term) but that's a very attractive offering giving peace of mind that, unless they move and/or borrow more, their mortgage payments will not change.

Could other lenders follow?

the shadow · 10 Mar 2021 at 17:15

https://www.dailymail.co.uk/money/m...abito-launches-new-mortgage-40-year-term.html

ash_scotland88 · 10 Mar 2021 at 17:20

Intriguing, depends how much you think we'll see base rates of increase that dramastically again.

Bald-Eagle22 · 10 Mar 2021 at 18:58

Bonkers .

I’m thinking your going to have to insure your life against an ERC .

Just re read , no ERC . WHATS THE CATCH .

Sui · 10 Mar 2021 at 19:04

Bald-Eagle22 said:
Bonkers .

I’m thinking your going to have to insure your life against an ERC .

Just re read , no ERC . WHATS THE CATCH .

I mean, they're quite expensive in comparison.

Obviously none of us know what the future holds with exchange rates, but I guess they'll make enough off the early higher interest rates to offset any interest rate movements later down the line unless we see some massive interest rates come along. They'll probably stop offering it when the first rate rise comes along

Randomface74 · 10 Mar 2021 at 19:07

The only certainty is you pay a terrible rate for the next few years.

alexakasloth · 10 Mar 2021 at 19:12

5.55% over 40 years with a 90% LTV is quite high. I would rather risk securing a shorter fixed rate with a view to remortgage at a better rate later with a lower LTV.

glenimp617 · 10 Mar 2021 at 19:24

Just seen this. Ouch at those rates!

Semple · 10 Mar 2021 at 23:00

alexakasloth said:
5.55% over 40 years with a 90% LTV is quite high. I would rather risk securing a shorter fixed rate with a view to remortgage at a better rate later with a lower LTV.

This.

It's not exactly financial savvy to lock in at a high rate even if there's no ERC's etc.

BUDFORCE · 11 Mar 2021 at 08:15

I can't see many people going for this, in the short term, by that I mean at least 5 years I cannot see interest rates rising much, if at all.

jonnypb · 11 Mar 2021 at 17:17

hmmm those rates seem very high, like people have said I can't see rates going up much at all in the next 5 years. Had a mortgage with different providers for over 16 years now and I've never paid above their 5.55%, it's been at under 2% for quite a long time now!

HungryHippos · 11 Mar 2021 at 17:48

I'd be all for a lifetime tracket at a sustainable base rate + X% like we used to see, not so much these days.

These rates seem high, especially if you are in a position to save/invest and clear a nice portion of the balance in the next few years, as rates look set to stay low for a while yet to me.

jonnypb · 11 Mar 2021 at 18:04

I know a lot of people who took out mortgages ages ago and they ended just at the right time when the interest rates bottomed out, their mortgage now tracks at 0.5% above the BofE base rate!