Spotlight On: Chelsea's 10-year fixed-rate mortgage
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The deal
Chelsea – part of Yorkshire Building Society – is offering a 10-year fixed-rate mortgage at 3.99 per cent.
The good points
If you think rates will rise in the next decade, fixing at less than 4 per cent now could be a wise choice.
The bad points
You'll need at least a 30 per cent deposit to qualify for the deal. The arrangement fee is expensive at £1,495. However, if you take a higher rate – 4.19 per cent – the arrangement fee falls to £195.
Conclusion
More lenders are offering longer-term fixed rates. Last week it was the Skipton with a fee-free 5.85 per cent deal that required a deposit of just 15 per cent. The attraction of long-term fixes is the security of knowing how much monthly mortgage payments are going to be. But if rates remain low, tying yourself into a 10-year deal could mean paying well over the odds for your loan. Also if you want to escape the deal, early repayment charges can be onerous. However, at 3.99 per cent, Chelsea's offer looks tempting.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments