A fixed rate mortgage is exactly what it states on the Tin, you are fixing the rate of interest that you will pay on your mortgage for an agreed period of time during which your mortgage repayments will remain exactly the same, irrespective of whether interest rates go up or down during the chosen period of time.
By fixing your interest rate you are giving yourself the comfort factor over a chosen period of time, that you will know what your mortgage repayments will be, and you can plan your budget accordingly, with the certain knowledge that your mortgage repayments will remain the same.
One of the other hidden benefits of having a fixed rate mortgage is that mortgage underwriters are far more comfortable with clients who opt for a fixed rate mortgage plan, particularly over the longer term.
Why is this the case ?? as all mortgages without exception are now based on affordability, mortgage underwriters prefer clients who chose a five year fixed rate or longer, as they feel that the clients financial position would and should improve over time, and they would benefit from having the mortgage repayments fixed and would enjoy the comfort and security of being able to plan their finances for the long term.
In todays mortgage market in 2020 we have the BOE base rate set at 0.75% which is under review and may fall in the short term with the issues surrounding our exit from the EU. But in the long term it would not be unreasonable to expect interest rates to rise as the economy improves and the government wants to improve social services, the health service, Police and the Armed forces and industry across the UK.
With this in mind a fixed rate mortgage would give you the comfort and peace of mind knowing that whatever happens to interest rates you will have the protection of knowing that you can budget with confidence within the chosen period of the fixed rate. This is something that most clients are happy with knowing exactly where you stand and being able to plan their finances for the future with confidence that a fixed interest rate will bring.
A fixed rate mortgage would normally be set for between two and ten years, and advice should be sought to see what term would be most appropriate for your given circumstances.
As all lenders base their terms on perceived risk, the larger deposit that you have to put down, or the more equity that you have in your property if you are looking at a re-mortgage, the more attractive the terms will be.
If you would like to see what terms would apply to you, please either call us or leave a call back request and we will contact you to discuss your options. We have access to the whole of the market and with over 50 years of experience in financial services we have the knowledge and experience to help you find the most suitable product and the most attractive terms to suit your personal circumstances.
Answer: Yes it will if your current credit profile is poor and it would appear that you are struggling financially. What lenders are looking for is good conduct of your financial affairs since discharge.
A Where the interest rate is fixed for a selected period of time and mortgage repayments will remain the same irrespective of whether interest rates go up or down.
A In today’s mortgage market normally between two and ten years, but please check at the time of asking as the market is always under review.
A 1 Because it gives you the certainty of knowing what your repayments will be.
2 It will allow you to plan for the future knowing what your commitments will be.
3 Mortgage underwriters are more comfortable with clients taking a fixed rate mortgage over five or more years.
4 The comfort factor of knowing what your mortgage repayments will be going forward takes some of the stress out of trying the plan for the future.
A it would be normal for a fixed rate plan to be portable to allow you within the loan to value to transfer the plan to another property.
A If there would appear to be a very strong chance of interest rates falling now or in the very near future, a short term fixed rate or discounted rate maybe another option.
A Security and a stress free plan. for the agreed period
In todays mortgage market in 2020 we are fully aware that interest rates will only rise in the future, how quickly and by what margins will depend on how and when we exit the EU and on what terms. With this in mind it would make sense in most cases for clients to consider a five or ten year fixed rate which takes away the uncertainty of what may happen in the mortgage market and will provide long term peace of mind and the comfort of being able to budget with certainty for the future. This also gives mortgage underwriters more confidence when assessing what maybe seen to be a tight line on affordability on an application.
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 A Mortgage 4 You, 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 0800 802 1003 .
Getting a Fixed Rate Mortgage Needn’t Be Difficult. The mortgage marketplace in 2020 is constantly changing, with lenders looking for business, meaning their lending criteria is always under review.
Here at A Mortgage 4 You we love to say yes. If you are looking for a fixed rate mortgage over 2 or more years then look no further.
Get started today. Simply fill out our enquiry form and a member of the Michael J Alexander team will be in contact.
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Whether you have been discharged 3 years or 12 months – it doesn’t matter, we can help.
We’ve been helping discharged bankrupts get back on to their feet and back on to the property ladder despite their circumstances. Arranging a bad credit mortgage or mortgage product for discharged bankrupts is a scenario we regularly deal with. Even if you have a history of bankruptcy and resposession we have access to whole of market lenders who will consider your application on various factors.
