Fixed rate mortgage choice.
By choosing a fixed rate mortgage you gain the advantage of increased financial certainty for an agreed period of time.
During the agreed term, which is generally between 2 to 5 years, you are assured that your rate will not rise. This is something that has become increasingly important in today's difficult economic climate.
With fixed rate mortgages forward planning and more accurate budgeting are made easier. You know what you are due to repay each month for as far into the future as you fix your deal. Fixed mortgage terms vary but more commonly they are offered between 2 and 5 years.
Longer term fixes have increased in popularity in recent months, and deals are currently on offer at 7 and 10 years. However not all lenders offer deals for these length terms. Therefore if looking for a longer fix you are advised to contact a mortgage expert such as Deal Direct for a whole market review.
Fixed rates suit home-owners who are not willing to risk a variable rate mortgage which can increase at any time. While the base rate has remained low for the last 3 years and is predicted to remain low for sometime into the future, a prediction is not a guarantee. Many are not willing to take a chance with their financial future, and therefore chose a fixed rate option.
If you are averse to taking a financial risk and you want set monthly mortgage repayments for the duration of your deal, a fixed rate mortgage could be right deal for you.
For the most competitive offers call Deal Direct.
