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Fixed Rate Mortgages
This is one of those rare occasions in financial services that it means exactly what it say’s on the tin. You can fix the interest rate at which you repay your mortgage for a given period of time irrespective of what happens to interest rates in the interim period.
If interest rates rise sharply when you are in a fixed rate option you may save yourself a great deal of money. If interest rates fall you could lose out. Taking a fixed rate is a gamble, but it does give you stability and the peace of mind that whatever happens in the financial markets you will repay at the agreed rate.
Other Mortgage Products
The overall cost for comparison is 5% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
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.