Fixed Rate Mortgages
A fixed rate mortgage has the interest rate fixed at a given level for a specific period of time. After that time, the interest rate changes to the standard variable rate for the remainder of the mortgage term.
Fixed rate mortgages are often able to provide a lower interest rate than the standard variable rate.
The deal will vary according to how long the rate is fixed for and the economic prospects at the time. Although there are generally fixed rate mortgages available, specific deals are usually limited to a total sum of money - once that sum has been lent, that particular deal will no longer be available. This isn't a marketing tactic - it relates to how the loan suppliers are able to fund fixed rates lower than the current rate without losing money.
There are usually strings attached to fixed rate mortgages that tie to the mortgage for a period after the fixed rate has expired. Additional charges will be made if you want to pay off or change your mortgage before or during this period.
Compare online quotes to get up to date information on the current deals available and their specific terms and conditions. Mortgage calculators allow you to work out what a specific mortgage will cost you. may be made online but seek independent advice before making any final commitments.
Remember, a mortgage is security for a loan in the form of the provision of a right in property, such as land or buildings. Typically, if terms of the loan are not met, then the lender has the right to sell the property to recover the debt.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.