With fears of an interest rate rise a fixed rate mortgage maybe the way to go.
For added security and peace of mind, a fixed rate mortgage could be the way to go. With a fixed rate you know exactly how much you need to repay each month for the term agreed.
Regardless of BoE interest rate changes, you will not wake up to a nasty surprise to find your lender has hiked its rates to cover increased funding costs. Your rate cannot go up unexpectedly, you will not need to pay more each month than the fixed repayment agreed at the beginning of your deal.
Knowing your monthly repayments for a fixed period allows for better financial planning.
While there are several advantages to a fixed rate deal, security and peace of mind does come at a price.
Fixed rates tend to be set slightly higher. However currently rates are far more competitive, where once they were set significantly higher than tracker rates this is no longer the case.
Over the last year UK lenders have reduced their fixed rates to such lows that fixed rate mortgages are now priced at similar levels to trackers
To work out whether a fixed rate or tracker is best suited your financial needs, you are advised to contact an independent mortgage expert for impartial advice.
If you want help working out which mortgage you should choose and you would like a low rate quote, call an impartial adviser at 'whole of market' broker Deal Direct.
Call 0800 048 8828 and let us find you a competitive low rate mortgage offer.
