What is a Fixed Rate Mortgage? |
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A fixed rate mortgage allows you to fix the interest rate of your mortgage for a specific period of time, keeping your monthly payments the same. Typically the monthly mortgage payment will remain the same for the term of your loan, which are commonly available for 2, 3, 4 or 5 years. A fixed rate mortgage allows predictability with your monthly outgoings.
The amount you repay each month is fixed for the period of your fixed rate mortgage. It's unaffected by changes in the base rate. |
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Pros of a Fixed Rate Mortgage |
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- provides security in knowing exactly what you’re paying each month
- if interest rates increase, your mortgage payments will not be affected giving you the ability to budget
- allows you to plan ahead as you know what your payments will be in advance
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Cons of a Fixed Rate Mortgage |
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- if the interest rate falls, your mortgage rate will not go down with it
- paying your mortgage back in full within the fixed rate period may result in early repayment charges
- arrangement fees on fixed rate mortgages are typically higher
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Fixed Rate Mortgages vs Variable Rate Mortgages (Tracker Mortgages) |
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A fixed rate mortgage provides security in knowing exactly what your payments are each month. This is a safer alternative to the variable rate and could be a better option for first time buyers or people who need the certainty of knowing how much to budget for. Variable rate or tracker mortgages are a higher risk to borrowers. While tracker mortgage rates can drop when the base rate drops, they can also rise when the base rate rises, resulting in your monthly payments being more uncertain. |
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Don’t risk paying more...or less! |
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If the interest rate drops, you could end up paying more than you would on a variable rate, but also consider if the interest rate rises, you would pay less. The most important thing is that you can you afford your monthly payments; a fixed rate mortgage can offer the security in knowing that you can.
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Call 0845 270 1010 or complete our short form if you'd like to learn more about fixed rate mortgages. Our quotes are free with no obligation. |
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Our consultations are free however we charge a standard fee of £295 for mortgages and £1499 for secured loans. |
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moneyQuest Mortgage Brokers Limited.
Registered office: moneyQuest, 3-4 Regan Way, Chetwynd Business Park, Chilwell, Nottingham, NG9 6RZ. Registered in England. No: 06593055
moneyQuest Mortgage Brokers Limited is an appointed representative of Legal & General Partnership Services Limited, which is authorised and regulated by the Financial Services Authority for advising on and arranging mortgages and insurance.
The Financial Services Authority does not regulate some types of buy to let, commercial, overseas mortgages, tax advice and credit or loans not secured on a property.
Calls may be monitored and recorded for training / compliance purposes. Approval Reference: H101523
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