Fixed Rate or Variable Mortgage?
Selecting a mortgage is one of the most important financial decisions you’ll ever make. You need to ensure you can afford repayments and factor in your affordability for the duration of your mortgage term.
Whether you are buying your first home, moving to a new house or looking to re-mortgage, we’ve got you covered with expert advisors to get you the right mortgage.
WHAT TYPES OF MORTGAGES ARE AVAILABLE?
When it comes to choosing a mortgage it isn’t always as simple as choosing the deal with the lowest interest rate. The type of mortgage you require depends on your personal financial situation, future plans and the type of property you are looking to purchase.
Fixed Rate Mortgages
With a fixed rate mortgage, you lock in your repayments for a set term, usually two to five years.
The main advantage of a fixed interest rate is the security of knowing your mortgage payments will stay the same for the length of time selected.
The main disadvantage of a fixed rate is that you won’t benefit from a reduction in costs IF interest rates fall.
Variable Rate Mortgage
If you opt for a variable rate mortgage, your monthly payments can change, this is due to your lender being able to change the rate of interest it charges you. Changes to your monthly payments out of your control can make it more difficult to budget for.
Variable rate mortgages will normally change when the Bank of England changes its base rate.
WHAT MORTGAGE DO I NEED?
First Time Buyer
A first-time buyer mortgage is aimed specifically at those looking to buy a property in the UK for the first time.
Remortgage
A Remortgage is when you switch your current mortgage to a new deal with your current lender or with another lender. It gives you the opportunity to find a better deal with a lower rate of interest.
Buy to Let
Buy to Let mortgages are in place for those who want to invest in a property, whether a house or apartment, and rent the property out to tenants. With a Buy to Let you will normally require a larger deposit versus a standard mortgage to buy a home to live in yourself.
Final Thoughts
The process of buying a property can seem daunting, but with the right advice, you will be able to navigate the process without difficulty.
If you would like to find out more, click Compare Mortgages, let us know a few details and one of the expert advisors will be in touch to help.
Alternatively, If you’d like to speak to the friendly UK based team please call – 0800 470 3751
