Fixed rate mortgages
Our Fixed Rate Mortgage Service - Why choose us?
Special features of what we offer include:
- Get the best fixed rate mortgage deals
- Whole of market service - we work with most UK lenders
- Access to leading market mortgage rates
- Access to exclusive loan deals not available on high street
- Fast turnaround - speak to us today if you need to move quickly
- We have lenders who will take into account previous defaults and missed payments
- Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions
To investigate your fixed rate mortgage options call our mortgage team on 0117 403 4474 or fill in our call back form.
Fixed Rate Mortgages
As the name suggests, a fixed rate mortgage has an interest rate that is set at a defined level for an initial term, usually lasting several years. This gives you the security of knowing exactly how much you’ll have to repay on your mortgage each month, for the duration of the secure your rate to give you fixed monthly repayments.
When this discounted period ends, make sure you can afford any increase in monthly repayments that may kick in as your mortgage switches to your lender’s Standard Variable Rate (SVR).
Choosing a fixed rate mortgage
One of the first things to consider when choosing a fixed rate mortgage deal is the length of the deal itself. There are a variety of fixed rate mortgages on offer, ranging from 2 to 5 year fixed rate mortgages. Once you have chosen a fixed rate timescale, you will need to look for the best deal available with the deposit or equity that you are able to put down on the property. The most competitive fixed rate deals may only be available to people with a large deposit or equity in their current property, and people with a smaller deposit may find that their choice of top fixed rate deals is limited.
Advantages of fixed rate mortgages
There are several reasons why you might consider choosing a fixed rate mortgage. These include:
Security - A fixed-rate gives you peace of mind because you know exactly how much you'll pay for your monthly mortgage repayments. You know that, during the initial fixed period, your monthly mortgage repayments won't rise, even if the Bank of England Base Rate does.
Budgeting is straightforward – Knowing that your repayments are fixed for the foreseeable future can be useful when it comes to planning your finances over the next few years. You can budget for other household costs more easily, without the worry that your mortgage repayments will suddenly skyrocket.
Easy to understand – If you are new to home ownership, a fixed-rate mortgage is an easy concept to understand as it is based on a stable monthly repayment, like a standard bank loan of the type you may have taken out previously.
Disadvantages of fixed rate mortgages
A fixed rate mortgage may not always be the best option for you, depending on your circumstances. Therefore, it’s worth considering the following points before you lock yourself into a fixed rate mortgage deal:
Potential for higher rates – Interest rates on fixed rate mortgage deals can sometimes be higher than those offered on variable or tracker mortgages.
Potentially losing out if interest rates fall - You may miss out on a more competitive interest rate if the lender's SVR drops to less than the fixed rate. Additionally, you won't benefit from any cuts to the Bank of England Base Rate.
Penalty charges if you repay early – Most UK mortgage providers will charge you a penalty - known as an Early Repayment Charge (ERC) - if you want to move to a different mortgage deal before the end of the fixed term. For example, if you take out a fixed rate mortgage, repaying the loan early could involve a percentage of the loan amount being charged as a fee, on top of the amount you owe.
Arrangement fees as an additional cost - In certain circumstances you may have to pay arrangement fees to set up a fixed rate mortgage.
For more information call 0117 403 4474.