Is the cheapest 3 year fixed rate mortgage the best deal for you?
Last week Norwich and Peterborough announced its 3 year fixed rate mortgage as its cheapest ever.
So how do you know whether a 3 year deal is the right one for you to choose? At Deal Direct we look at your individual circumstances and then advise you on the type of mortgage that may suit your situation best.
Fixed rate mortgages give you the reassurance of knowing what your monthly payments are going to be. The rates do not change with the Bank of England base rate or when building societies decide to change their standard variable rates.
However a lot can change in the mortgage market in the period of a 3 year fixed rate mortgage and some consideration needs to be given to what happens when the fixed period is over. So how do you decide whether 3 years is long enough?
There are three main issues when looking for a fixed mortgage rate, the first determining factor is obviously how long you think you will stay in the property. In terms of mortgage costs both the future base rate movements and the effect of wider economic trends will be an influence.
Here at Deal Direct our experienced staff will look at your long term plans and at the potential state the mortgage market when fixed rate products end. This will help you assess if a 3 year fixed rate mortgage is the best product for you or if another deal could save you money in the long term.
Give Deal Direct a call and we can help you look at the full range of products in the market.
