Fixed Rate Mortgages

The phrase ‘interest rates can go up as well as down’ has almost become something of a cliché but this phrase is true, that is unless you have fixed rate mortgages.

What are fixed rate mortgages?

This type of mortgage is where the interest rate you pay on the mortgage can be fixed for a specific amount of time.  The set periods on offer are normally between 2 – 5 years but in some cases it is possible to fix the rate for the entire term of your mortgage.

Benefits

One of the main advantages of  fixed rate mortgages are that they better enable you to plan your finances as you will know exactly how much you have to pay out each month. This could be vital, especially if you are on a tight budget as an unexpected increase in interest rates could cause financial difficulties.  Another benefit of fixed rate mortgages is knowing that you are saving money should the mortgage interest rate go up.

Disadvantages

The main disadvantage of fixed rate mortgages is fixing it at a certain rate and then later the rate plummets leaving you paying more than you otherwise would have done.  However it is better that this happens than you have a variable rate mortgage where interest rates rise dramatically throwing you into financial difficulties.

Summary

There are pros and cons to having fixed rate mortgages depending on the fluctuations in the market and if you would like further information why not fill out the online form and one of our professional mortgage brokers will get in touch to discuss your requirements.

 

 

 


 

Commercial Mortgages and Buy to let mortgages are not typically regulated by the FSA

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

We do not charge a fee for mortgage advice. A fee based option is available of typically 2% of the mortgage amount.
For example on a loan of £25,000 the fee would be £500



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