In recent years, rising property prices and interest rates have made it more difficult to get onto the property ladder. Indeed, according to Uswitch, the
In recent years, rising property prices and interest rates have made it more difficult to get onto the property ladder. Indeed, according to Uswitch, the
A fixed rate mortgage provides stability for homeowners each month as the monthly repayments will remain the same for the duration of the term.
I want to
What are the benefits?
When applying for a fixed-rate mortgage, you will need to be sure you can make the required monthly payments. Lenders aim to ensure that your mortgage payments are affordable in relation to your financial situation.
Most fixed-rate mortgages offer terms for 2, 3, 5, or 10 years. While longer arrangements offer more stability, they are also associated with higher rates.
If you’re planning ahead, it’s worth contemplating your long-term financial situation and the aspirations you (and your family) have for the coming years. For example, if you expect to remain in the property for a long period, you may be more suited to a longer fixed-term arrangement.
What are the risks?
How comfortable are you at the prospect of interest rate changes? If you’re unsure about whether a fixed-term mortgage is right for you, it’s best to consult with a mortgage advisor such as UKMC who can give you advice tailored to your specific circumstances.
Read the fine print of your fixed-rate mortgage contract. Some products of this type include penalties for repaying early or switching lenders during the fixed term. Be aware of these so that you can make an informed decision.
Like with all mortgage applications, your credit history will be considered. Do you have a history of racking up debt? Or are your finances in order and you have savings to your name? Those with little or no debt are more likely to make a successful application for a fixed-rate mortgage.
If you’d like to learn more about the pros and cons of fixed-rate mortgages, arrange a consultation today with one of the experienced mortgage advisors at UKMC.
More than just a mortgage advisor, we take the time to understand your specific needs, helping you to secure the best deal for you and your family. To find out more, complete our call back form today!
What Is The Criteria To Apply?
To qualify for competitive fixed-rate mortgage deals, you should have a good credit score.
You will require a deposit of around 5-10% of the value of the property.
Provide proof of income and pass affordability assessments to provide a guarantee that you can meet the monthly payments.
The property must be in line with the lender’s criteria.
Lenders typically prefer applicants who can prove they are currently in stable employment and are receiving a regular income.
Find expert guidance, and all the information you need to make informed decisions on your path to homeownership.
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
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