Salt mortgages | Bristol west mortgages | Landlord mortgages | Poor credit mortgages | Mortgages made easy | Conforming mortgages | Adverse credit mortgages | Mortgages with bad credit | Endowment mortgages | Discount mortgages | Mortgages for teachers | Mortgages usa | Compare the market mortgages | Irish mortgages | Current interest rates for mortgages | Buy to let mortgages calculator | Tmb mortgages | Low rate mortgages | Key worker mortgages | Investment mortgages | Equity mortgages | Best rate mortgages | Aib mortgages | Mortgages in spain | Cash back mortgages |
Mortgages inc article
Information About Fixed Rate Mortgages
Are you are about to purchase your first home? Are you unsure as to which type of mortgage to choose? In this article I am going to be writing about fixed rate mortgages, about why they are so popular and about why mortgage brokers, banks, building societies and financial advisers love to sell them. I hope you enjoy reading the article and find it beneficial.
The majority of people decide to choose a fixed rate mortgage for two years. The beauty of this is that they know what their mortgage repayments will be each month, for this period of time. The fixed rate will be lower than the lenders standard variable rate and therefore everything mortgages inc looks good.
During the last year in the UK, we have seen a number of interest rate rises and it may come as quite a shock to people over the next few months as their two year deals come to an end. For example, a couple of years ago Mr Smith may have taken out a two year fixed mortgage at a rate of 4.5%. When it comes to re-mortgaging, lets say next month, the best rate may only be around 6.2%.
Now I am not going to give any type of financial advice here but what Mr Smith also has to contend with are all of the additional fees that are involved, such as the arrangement fee.
On a personal note I hate having to pay these fees, £799 arrangement fee, what are you arranging? I prefer to arrange my rate for five or ten mortgages inc years to avoid having to keep paying these fees every couple of years. I also arrange it on a variable basis as I am happy, and in a financial position, to ride the wave of higher and lower interest rates.
In my humble opinion the mortgage adviser will rarely advise people to take out a mortgage over longer than a two year period as they want to keep arranging this mortgage for you, it is commission after all. It is a lot better for them to have this commission paid five times in a decade compared to just twice if arranging a five-year deal.
Stephen Hill runs The How To Stop Stammering Centre, he has a number of websites including:
Mortgages inc comments: