25 years fixed interest rates

[EthanIsHere]

Hi, First time buyer here. I am looking for long term fixed interest rates mortgage and come across Avant money.
They seem to have decent rate 2.99% for 25 years for 90% LTV.

Any body experience Avant money ? thanks

 

[NoRegretsCoyote]

They seem to have decent rate 2.99% for 25 years for 90% LTV.

Why do you want to fix for 25 years?

There is just a potential for a big breakage fee if, for example, you want to move house in a few years.

I think fixing for long makes sense if your mortgage payments are a high % of your income, you don't have much potential for a pay rise, and are in your "forever" home.

But for someone aged 30 on a career track they'll probably see their income rise over time and will be able to deal with volatility in mortgage rates out of regular income. As such, they are usually better off taking the cheaper option of a shorter-term rate.

It might make sense to fix a portion of your mortgage for a short period, and another portion for long. I don't know if Avant offer this.

 

[EthanIsHere]

I think fixing for long makes sense if your mortgage payments are a high % of your income, you don't have much potential for a pay rise, and are in your "forever" home.

Thanks for your feedback. ^^ that is exactly where I am and that's why I would like to go ahead with a long term fixed the rate.

 

[RedOnion]

There is just a potential for a big breakage fee

One of the big selling points of this particular Avant product is that the break fee is capped.
And you can move house and keep rate (but that only works if Avant are still landing competitively when you move).

I wouldn't be as dismissive of it as an option.