Quick Fixed Rate Mortgage Enquiry

Fixed Rate Mortgage

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fixed rate mortgage is perfect for those who want to feel in control of their finances and know exactly how much their mortgage repayments will be each month for a set period of time.

A fixed rate mortgage differs from a variable or tracker rate mortgage in that it’s unaffected by the Bank of England’s Base rate for the term of the mortgage deal. You are effectively protected against interest rate rises, but at the same time will not benefit from any interest rate reductions.

If budgeting is a consideration, a fixed rate mortgage offers peace of mind knowing that your monthly repayments will remain the same for a certain period of time. Typically this is 2, 3 or 5 years, although you can secure a fixed rate for up to ten years from some lenders. The costs will vary with a 2 year fixed rate mortgage being cheaper, and the costs increasing the longer your fix your mortgage rate for.

At the end of your fixed rate period, you will normally revert to the standard variable rate set by your lender, which is subject to rate changes.

It is worth remembering that fixed rate mortgages carry early repayment charges should you pay off your mortgage or choose to remortgage before your deal ends.

How does a fixed rate mortgage work?

  • You won’t benefit from a fall in interest rates, but will be protected against any rises
  • You can fix your mortgage rate for a set period of time, but costs will vary.
  • You may be subject to early repayment charges if you remortgage.
  • Depending on the mortgage terms, you may not be able to make overpayments.

At Derngate Wealth, we can help you to determine what these costs will be should you find yourself in this position. If you would like the option to make overpayments on your fixed rate mortgage, we can help you to find lenders that allow for this. Contact us for more information and advice on the fixed rate mortgage products available today.

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