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Fixed Rate Mortgages - Compare Fixed Rate Mortgage Offers
Taking on a mortgage is a huge financial commitment for most people, and a long term one at that.

That is why it is so important to ensure that you can comfortably afford the repayments on the mortgage, although this can be difficult due to fluctuating interest rates.

For those taking on their first mortgage budgeting can be all the more difficult, as often first time buyers are not used to having to manage their finances effectively, and may be younger and on lower incomes that cannot take much in the way of stretching should interest rates rise.

Fixed rate mortgages are an effective solution for those that want to enjoy some form of financial stability, and this type of mortgage can make budgeting far easier, particularly for lower income homeowners that cannot afford to be hit with higher repayments if the interest rate rises.

With fixed rate mortgage the interest rate is fixed for a set period, such as three or five years, and during this period your repayments will remain the same each month no matter what happens with the base rate set by the Bank of England.

With fixed rate mortgages rising interest rates won’t make any difference to the mortgage payer, and those with fixed rate mortgages can avoid the financial pinch of interest rate rises. On the downside, if the Bank of England interest rate falls those with fixed rate mortgages will have to continue paying the fixed rate and will not see any financial gain in terms of lower monthly repayments.

The interest rates on a fixed term mortgage can vary from lender to lender and are generally fixed at slightly above the base rate. Once the fixed rate period is over the interest rate reverts back to the lender's standard variable rate.

Once your fixed rate period has ended you can switch to another fixed rate deal if you wish to, although the rate that the new mortgage is fixed at may differ based on what the base rate is at that time. Some people may wish to try and get out of the fixed rate mortgage before the fixed rate term has expired, but this can prove to be very costly because of the penalties attached.

You will find a number of lenders that offer fixed rate mortgages, and in order to find the most competitive deals it is important to compare a range of fixed rate mortgages from a number of lenders. This can be done quickly, easily, and conveniently online, where you will find a wide choice of fixed rate mortgages available from a number of lenders.

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Posted on: [ July 01, 2018 ]       Add to   Digg it   Add to Blinklist   Add to FUrl   StumbleUpon