A fixed rate mortgage ensures that the interest rate does not change throughout the mortgage term. Fixed rate mortgages bring many benefits, particularly at a time where interest rates are going up. In this blog, we will discuss the benefits of fixed rate mortgages.
1. No re-mortgage cycle:
One major benefit of fixed rate mortgages is that you have greater flexibility and do not have to worry about being employed or changes to your income at the time of re-mortgaging.
2. Early mortgage payments without redemption charge:
A fixed rate mortgage also means that you will have more financial stability and do not have to worry about rising interest rates as you will be protected against interest rate risk for up to 30 years.
With a fixed rate mortgage, you feel more confident about your payments as you will know what you will pay each month. Your mortgage rate will remain the same until that period ends.
4. Ability to port your mortgage:
You will be able to transfer your current mortgage to your new home.
What happens when the fixed period ends?
Once the fixed period ends, you will be transferred onto a standard-variable rate (SVR) mortgage. The price of the SVR mortgage varies depending on what is offered by your lender. SVR mortgages are also more expensive than fixed mortgages, therefore it is important to re-mortgage to a new deal. You can do this by making an agreement with your lender or finding another provider.
Watch our Fixed Rate mortgages video here: Benefits of fixed rate mortgages – YouTube
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