Should we fix our mortgage rate?

We are next-time buyers looking to purchase a fixed-rate mortgage with a view to staying in our next property long term. We have been offered a 10-year fix at 4.89% with Scarborough building society. Should we go for it?

We have been told we can transfer this mortgage to a new property if we move within the fixed term, for £150 fee. Is this the good deal it sounds? We like to know our outgoings and consider that over the 10 years rates are unlikely to stay at well below that rate for any length of time. What would you advise?

JT

A Given that you say that you like knowing precisely what your outgoings are each month, a fixed-rate deal is certainly a good idea. And if you value certainty over gambling on what interest rates generally will do in the next decade, a 10-year fix would also seem to be a wise choice.

However, although the 4.89% offering from the Scarborough building society is a good deal, it's not the most competitive. And, although it's worth having, the Scarborough is not unique in offering full portability without penalty if you move within the fixed-rate period since you'll get this kind of in-built flexibility with most fixed-rate mortgages.

The 10-year fixed-rate deal launched last week by Leeds building society, for example, is fully portable if you move house, and offers a very competitive rate of 4.69% fixed to October 31 2015. However, it's available only to people looking to borrow no more than 80% of the lender's valuation of the property that the mortgage will be secured on.