If you're looking to lower your monthly mortgage payment or to find a fixed rate mortgage, we can help. Even in the current financial climate, the UK's mortgage lenders still help many people find fixed rate mortgages with which to buy their homes.
What is a fixed rate mortgage?
In a fixed rate mortgage, interest rates are fixed for a set period of time. When you sit down to negotiate the terms of your fixed rate mortgage with your lender, you will decide with them for how long your interest rate will be fixed. Most fixed rate mortgages have fixed rate periods of 3-10 years, but the 15 year fixed rate mortgage is gaining in popularity and in some cases, lenders offer lifetime fixed rate mortgages.
How will a fixed interest rate will help lower monthly payments?
A fixed rate mortgage will help you plan for the future. When the Bank of England's Base Rate or the standard variable rate fluctuates, the interest rate on your fixed rate mortgage will remain static. This stability allows you to plan ahead with your finances and to create dependable budgets.
What are the benefits of a fixed rate mortgage?
A fixed rate mortgage may be the best choice for a first time buyer because he or she will have stability and a static monthly payment on their fixed rate mortgage. As mentioned above, fixed rate mortgages come in 3-10 year fixed rate periods, and occasionally they come with lifetime fixed rates. After the fixed rate period is over, rates will return to normal, but you will have benefited from the fixed interest rates earlier in the term of your loan. After rates return to normal, you may want to consider a remortgage in order to find another fixed rate mortgage. In the UK, interest rates on fixed rate mortgages depend on the fixed rate mortgage products available at the time. You may benefit from services like this which help you find the best rate for your fixed rate mortgage. Mortgage finder services, such as this one, will match you with top lenders, and it will help you get the quote you need for your fixed rate mortgage.