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Fixed Rate Mortgages

A Fixed rate mortgage is exactly what it appears to be, you are fixing your mortgage interest rate for a chosen period of time, and your repayments will not change within the fixed rate period, irrespective of whether interest rates go up or come down.

By fixing your mortgage rate you are giving yourself the comfort of knowing exactly what your repayments will be over a given period of time, allowing you to budget with confidence knowing exactly what your future repayments will be.

The other hidden additional benefit of having a fixed rate mortgage plan, is that now all mortgages without exception are based on affordability, lenders are generally more happy and flexible with their underwriting if the clients op for a  5 year fixed rate mortgage. This allows underwriters to take a view of the clients going forward where it would appear that the clients financial position may improve and with the mortgage repayment being fixed for 5 years.

In the mortgage market today with 2019 almost upon us, we know interest rates will only rise in the future, how quickly and when will happen will depend on our proposed exit from the EU and how we make that exit. With this in mind a fixed rate mortgage product should be a very strong choice for clients who prefer certainty to uncertainty, a long term fixed rate mortgage plan will give you that level of comfort and certainty that most clients are happy with.

If you would like to know what options are available to you for Fixed Rate product’s please contact us now.

Office 03452 605506

Mobile 07867 794837

Email michael.alexander@btconnect.com

 

 

More About Fixed Rate Mortgages

Most clients would of course prefer to buy into a fixed rate plan when interest rates are set to rise, but sometimes we are not in a position to forecast accurately  a change in the market. Where we are now in August 2018 at the bottom of the interest rate curve, would in a normal market be a prime time to buy into a fixed rate plan, as interest rates can only go up in the future. However the cost of buying fixed rate funds by the lenders has risen as a result of going back into a recession and current fixed  interest rates do not really reflect where we are in the interest rate cycle.

A fixed rate mortgage would normally be for a term of between two and ten years, unlike in the past when you could fix the mortgage interest rate for the whole of the mortgage term. Advice should always be taken when you consider if you should fix the interest rate and the fee that the lender will charge you for the privilege.

Why not give us a call at Michael J Alexander, we are Independent Mortgage Advisers with over 40 years of experience in financial services, and we are here to help and advise you with the most suitable product to suit your personal circumstances. Call us now on 03452 605506.

 

The overall cost for comparison is 5% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration.