With a fixed rate mortgage, the rate of interest is fixed for a certain length of time, usually between 1 and 5 years. The major benefit is you'll know exactly how much you will pay each month for the fixed rate period.
Fixed rates can be good value if interest rates look set to rise in the early years of a mortgage, although bear in mind that the mortgage providers are likely to be one step ahead of you and adjust their fixed rates accordingly.
However, the fixed rate also means you could end up paying more than everyone else if general interest rates fall below the figure you've set yours at. But that's the risk you take in exchange for having certainty about how much you will pay each month.
Make sure you get the best fixed rate mortgage deal for you. Simply complete our no obligation enquiry form to receive a mortgage quote from a specialist adviser. They'll consider not only the lowest introductory rates, but also consider other factors such as the likely speed of application, lending criteria and hidden fees to ensure they find the best fixed rate deals for you.
How do you decide between a fixed rate or tracker mortgage? Is there a good compromise?
When it comes to mortgages, choosing between a fixed rate and a tracker deal is a difficult decision. With so much economic uncertainty and speculation over the Bank of England Base Rate (BBR), borrowers can decide to fix their mortgage and have the certainty of set payments or go for a cheaper tracker in the hope the BBR stays at its record low of 0.5%. It's a tough call and much depends on your own personal circumstances, your attitude to risk and how you think BBR will move in the future.
If you know you would struggle if rates started to rise, it's important to look at ways of preventing your mortgage payments from shooting up. One of the ways to protect yourself is by remortgaging to a fixed rate deal.
Most mortgage lenders offer a range of fixed rate mortgages and the most popular among British homeowners are 2 year fixed rates, but increasing numbers of borrowers are turning to longer fixed term rates of 3, 5, 7 or 10 years. These longer term fixes offer borrowers more security and cut down remortgaging costs, but you will have to pay a hefty penalty to leave if you decide to switch to a different deal within the fixed rate period.
Let an expert adviser do all the shopping around for you.
It is very important to shop around to get the deal that is right for you.
A truly independent adviser is not tied to a single lender or to a restricted panel of mortgage companies. Instead they will scan the entire market to locate the most appropriate and cheapest deals for you.
Simply provide a few details by filling in our no obligation online enquiry form. It costs you nothing to see what your options are.