Seek help to find the best mortgage for your needs.
Interest rates may rise sooner than you think as the BoE warns rates could go up before the end of the year. To avoid financial hardship should rates rise, remortgage and lock into a cheap fixed rate mortgage.
While it may be an easy decision to go for a fixed rate, deciding which mortgage term to choose may be more complicated.
With a 2 year fix the major attraction is a low rate, for a shorter term mortgage lenders are prepared to offer a cheaper deal. However on the downside a 2 year fix does not offer as much long term security as a 5 year fixed rate mortgage.
With a 5 year deal you do not need to remortgage so often and can therefore save on remortgage fees. While a longer term fix does offer increased security, this comes at a premium as rates are higher.
Before deciding which deal to take it is important to factor in the potential cost of any early repayment charge. If you accept a 5 year deal with an ERC be aware that should you decide to remortgage or move before the term ends you could pay an expensive penalty.
Consider rates, fees, incentives, early repayment charges and always compare products on a 'like for like' basis to ensure you end up with the most competitive deal overall.
As comparing deals on a 'like for like' basis can be complicated we recommended you call us for impartial independent mortgage advice to ensure you end up with the most affordable mortgage for your circumstances.
Contact a Deal Direct adviser for a low rate quote.
Call us on 0800 048 8828.
