http://www.uswitch.com/mortgages/comparison/

Fixed rate mortgages

Fixed rate mortgages are often considered the safest and simplest type of mortgage – as your monthly payments are fixed at a certain rate for an agreed period of time, your monthly repayments would stay the same if interest rates were to rise.

Company Loan to ValueInitial RateAPRPeriodFee
60%2.28%4.5%2 Years£995Proceed
70%2.69%4.4%3 Years£995Proceed
85%4.58%4.7%5 Years£0Proceed
85-90%4.59%4.3%2 Years£0Proceed
85-90%4.79%4.5%5 Years£0Proceed

If you need help at any step of the way and would prefer to speak to someone call our mortgage service which is provided by Seico Mortgages: 0800 840 6500

Fixed rate mortgages basics

With a fixed rate mortgage the mortgage payments you make each month are fixed at a certain rate for an agreed period of time. So, if interest rates rise you have the security of knowing your monthly repayments won’t be increasing.

Fixed rate mortgages typically last for two or three years, but can be for longer, such as five or even ten years.

Fixed rate mortgages are popular, but there are a number of factors to consider before taking out a fixed rate mortgage deal.

The advantages of a fixed rate mortgage

  • Your mortgage payments will be safeguarded against any increase in interest rates or increase in your lender’s standard variable rate during the fixed rate period.
  • If it looks like interest rates will go up, a fixed rate mortgage deal will help to protect you from rising repayments.
  • Fixed rate mortgages make it easier to budget, because you know exactly what your repayments will be for the duration of the fixed rate period.
Fixed rate mortgages

The disadvantages of a fixed rate mortgage

  • If you want to pay off your fixed rate mortgage early you may be subject to an early redemption penalty, which can be expensive.
  • Some fixed rate mortgages come with extended tie-in periods. This means that the borrower has to keep their mortgage with the lender for a set period of time even after the fixed rate mortgage period has ended, or face an early repayment charge.
  • If the lender’s standard variable rate falls, or interest rates fall during the fixed rate period you may be left paying over the odds.

Things to consider when choosing a fixed rate mortgage

  • If interest rates go up , there may be a substantial increase in your monthly repayments when your fixed rate deal expires. Try to put some money aside during the term of your fixed rate mortgage to help you to meet any higher repayments.
  • What is the financial penalty should you pay your fixed rate mortgage off early?
  • Will an early repayment penalty continue to be applied, even after the fixed rate deal finishes?
  • What are the up-front charges (if any), such as arrangement fees?

Read more…

  • Home Buying Costs Buying a home is the single biggest financial commitment you’re likely to make
  • Rent To Buy Read our guide to learn if this scheme is right for you
  • First Time Buyer Guide If you’re looking for your first home the mortgage market can be daunting

Compare all fixed rate mortgages

Whether you're buying your first home or remortgaging - compare the best mortgage deals with uSwitch today

Compare now