2 Year Fixed Rate Remortgage
2 Year Fixed Rate Remortgage - Fast Decision
The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support.
"We know that the internet is the first port of call for many people when looking for mortgage solutions; our view is, yes use the internet to do your own research , but then bring it to us and we’ll let you know how your findings compare and then give you the information and advice you need - so that you can make the right decision for your future.” Adam Arnott, Head of Mortgages & Protection
A 2 year fixed rate remortgage has an interest rate that is set at a defined level for a 2 year term. If a 2 year fixed rate remortgage sounds as if it may suit your requirements, there are many competitive mortgage offers available.
Comparing mortgage deals can enhance the likelihood that you will find a policy most suited to your needs, so use our FREE online mortgage calculator to search for remortgage deals based on your personal circumstances.
Advantages of a 2 year fixed rate remortgage
There are several reasons why you might consider choosing a 2 year fixed rate mortgage. These include:
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Sense of security - A 2 year 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 2 year fixed period, your monthly mortgage repayments won't rise, even if the Bank of England Base Rate does.
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Predictable costs - Your payments won't change over the two year period, and knowing that your repayments are fixed for a 2 year term can be useful when it comes to planning your finances. What’s more, if rates go up, your agreed rate will remain unaffected, potentially saving you money each month compared to people with variable or tracker mortgages. You can be comfortable in the knowledge that repayment will be the same each month
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Short term commitment - If you are unhappy with a 2 year fixed rate mortgage you can change to different mortgage deal after the fixed rate has elapsed (bear in mind that exit fees or early repayment charges may apply in these circumstances)
Disadvantages of 2 year fixed rate remortgage
A fixed rate remortgage 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:
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You may miss out on a more competitive interest rate - With a 2 year fixed rate remortgage you need to be mindful that if variable interest rates go down you will not benefit, and when the deal comes to an end, you automatically go onto your lender’s variable rate, which could add a considerable amount to your monthly repayment. With the Base Rate at an historic low at time of writing, this may not be as much of a concern for homebuyers as it has been in the past.
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Possible penalty charges if you repay early – Most remortgage 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 remortgage, repaying the loan early could involve a percentage of the loan amount being charged as a fee, on top of the amount you owe.
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