3 year fixed rate mortgage options
A 3 year fixed rate mortgage can give a borrower peace of mind knowing that their outgoings will remain the same. A fixed mortgage gives a borrower security in the knowledge that whatever happens to interest rates their monthly payments will stay at the same fixed level for an agreed period.
Fixed rate mortgages are available over different terms which include 2 and 3 years. If a borrower thinks interest rates may rise then a fixed rate mortgage deal is worth considering. Although the rates offered on 3 year fixed rate mortgage deals might be a little higher than on 2 year fixed rate mortgage deals, the fees charged are generally similar. Fixed rates are useful for borrowers planning their budget around future life events that match the mortgage term, for example, planning to start a family.
Fixed rate mortgages may have an early repayment charge which will vary from lender to lender but, normally this only applies during the fixed rate period itself. With interest rates currently only heading one way, which is up, it could be the right time for borrowers to lock into a fixed rate deal. The Yorkshire Building Society is offering a 3 year fixed rate mortgage deal at 4.9% for 85 per centLTV, the loan has a £300 arrangement and £195 booking fee and is until the end of February 2015.
