Mortgage fixed rates are an attractive option for buyers due to the non-fluctuation of the rates attached to the mortgage. What this gives the buyer for mortgage fixed rates is security and stability which enables them to budget carefully for costs each month. Mortgage fixed rates are also sometimes more expensive if the rate for the overall market was to fall however on a whole they offer a good deal for the pruchaser. If the rates increase then the rate will stay the same and the monthly mortgage costs will not increase as a result.
Mortgage Fixed Rates - Finding the ideal solution
Finding the ideal mortgage fixed rate is not the easiest task, each mortgage has underlying aspects of it which take into account your individual circumstances and personal details. This can affect the risk to the mortgage company and therefore the rate which you are offerred. It is always advisable therefore to ultimately speak to an adviser to point you in the right direction for finding the best deals for your mortgage fixed rates. This can save you a lot of time, and in the long term, a lot of money. Mortgage fixed rates can be found on price comparison sites, but just like car insurance each one may have a number of terms and conditions associated with the mortgage and the way in which the rate is calculated. For example some mortgage companies may have clauses which allow them to increase or change the rate should you miss a mortgage payment. In business scenarios if the profit of the business is not high enough this can affect the mortgage fixed rates. For peace of mind you can speak to one of our advisers who will highlight any clauses which you need to be aware of when appling for a mortgage fixed rates.
Mortgage Fixed Rates - which one is best?
There is no fixed mortgage company which is best every time. Each person who applies needs to be assessed individually so that we can determine which company might suit your needs. Why is this the case? Some companies prefer to deal with a certain type of customer as they have tailored their solutions towards them. Because their mortgage fixed rates and product types are changing all the time for the best solution it is best to speak to an adviser. They will be able to understand you and what you are looking for much quciker than automated methods which will probably vary when you end up speaking to an adviser. Request a FREE call back from Bournemouth Finance to discuss your mortgage fixed rates today and we can point you in the right direction.
Mortage Fixed Rates vs Variable Rates
It is deemed to always be slightly more risky going down the route of a variable rate vs a mortgage fixed rates approach due to the nature of variable mortgages. Therefore on the whole fixed rate mortgages tend to be more popular if they can be obtained at a competitive rate. This is where Bournemouth finance are about to identify and select the best mortgage fixed rates on your behalf and present those which are most likely to suit your needs. How long does this process take? We can usually find a suitable solution within just a week of speaking to you and have everything setup and ready to go providing we have all your current details.
Mortgage Fixed Rates - Where to start
If you are looking to find a mortgage and don't know where to start then speaking to us may be the best option. There are literally thousands of choices to make with mortgage products on offer currently in the market, the fact that you are borrowing such large amounts of money is what also adds to the fear factor. This doesn't have to be the case and by using Bournemouth Finance you can greatly reduce the responsibility of finding and applying for that ideal mortgage.
How is the mortage fixed rate loaned?
Mortgage companies will provide the loan and secure it against the property. This means that if you do not make the necessary repayments on the mortgage that the lender may be in a position to reposess your home to retrieve their money. While this may sound daunting it is better to be aware of these factors before you start applying for mortgages.
Once the mortgage company has valued the property for the mortagage fixed rates or variable they will then make an offer so long as they are happy that the property is valued as hight as what you are paying for it. This means you need to get a good deal on your property purchase otherwise the lender may not be prepared to provide the mortgage as they may be concerned that the value of the property would not return them their funds should then need to repossess and sell the property.
Mortgage Fixed Rates - vs the two variable types
Earlier we touched on the mortgage fixed rates vs the variable rate mortgages however there are two main types of variable mortagages. These are 'trackers' and 'discounts' Trackers are directly linked to the bank of England base rate and the rate which you pay back will be the same in ratio to that rate. So if your mortgage rate is set to 3% above the base rate if that base rate was to increase from 1% to 1.5% your rate would increase from 4% to 4.5% which will increase the amount you have to repay. This can be worrying for households who do not have a high rate of disposable income. This means that you would probably be more suited to a mortgage with fixed rates.
The other type of mortgage that is variable is the discount mortage which is provided as a rate by the lender with a discount amount. The lender may set a rate of 5% and provide a discount of 1% leaving you with a rate of 4%. However if the lenders rate should increase to 5.5% then your rate would also increase to 4.5%. Therefore some may argue that as mortgage fixed rates go it may be better to find a mortgage deal for 4%. At least this would stay fixed for a period of years regardless of the lenders rate and the bank of England base rate.
Mortage Fixed Rates - Penalties
It is always advisable to check to see if there are any penalties for changing the mortgage type before the agreed term has been completed. There are sometimes penalties for cancelling early which is because the mortgage company may be losing out on revenue if you were to change your deal to something more competitive. These penalties are designed to deter you from trying to make changes to the deal you have arranged with the mortgage company.
Morgtage Fixed Rates - Fees
Most mortgages will incur an arrangement fee which will need to be paid as the mortgage is processed. Don't worry this is not something that happens before you accept it and wouldn't be applicable just by speaking to the mortgage company. Sometimes mortgage companies will take an up front fee on the mortgage fixed rates arrangement so it is always a good idea to speak to an adviser beforehand about this fee. The cost of this fee can vary from a few hundred to a fe thousand depending on the type of mortgage and how much you are going to borrow. It is usually well worth paying a fee because this can result in a much lower product fee over time. Why not speak to us today to see if we can find you a mortgage fixed rate with a resonable fee.
Mortgage Fixed Rates - Terms
Most mortgages are spread over a term of around 25 years. They may vary however depending on the status of the individual applying. For example for a mortage fixed rates term with an older age applicant there may be a maximum age limit or the term may be reduced down to 15 years to compensate for the fact that the working term for that individual is likely to be nearing retirement and therefore might be more at risk of defaulting on mortgage payments. Which term is best to choose? Ideally the aim is to be mortgage free and this is easier with a shorter mortgage so long as the repayments are reasonably affordable. This balance needs to be considered when selecting an ideal mortgage.
Mortgage Fixed Rates - Repayment vs Interest Only
Mortgages are available on repayment or on interest only. This allows the borrower to either pay the balance of the interest each month and not the property or they can take a repayment option which allows them to pay the mortgage interest while reducing the mortgage amount. The advantage of a repayment mortgage of course is that eventually the property will have no mortgage left to pay, while the advantage of the interest onlly mortgage allows the borrower to potentially borrow more as the rate they have to pay on interest only tends to be lower. The only time this can cause a problem for both parties is if the value of the property decreases in value this leaves the borrower with a mortgage value that is higher than that of the property which would effectively prevent them from being able to sell. Mortgage fixed rates on repayment are usually the ideal option for both parties.