"The Easy Way to Get Your Best UK Mortgage" |
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Mortgage Guide
Click for Full Contents
Types Of Mortgage
Click for Full Contents
Fixed Rate Mortgages
What is a fixed rate mortgage?
Pros and Cons of fixed rate mortgages
Should I go for a fixed rate mortgage or a discount rate?
Should I fix my mortgage for 25 years?
What is a variable rate mortgage?
Latest BEST BUYS rates for Fixed Rate mortgages
What is a Fixed Rate Mortgage
This type of mortgage is where you and the mortgage lender agree to fix the interest rate owed on your loan for a set period of time.
The period of time is usually between 1 and 5 years but could be longer. (That simply depends on the exact mortgage deal you choose).
After the agreed period, the interest rate owed on your loan usually reverts to the lender's Variable Rate.
Good Points: You know exactly what you'll owe. No surprises.
Bad points: If interest rates drop you may be paying more than you might have done if you'd gone for the Variable Rate. But interest rates might rise... At least you're not gambling with your home...
If you want to leave before the agreed term the early redemption penalty is usually significant. For example you may be charged six months gross interest if you leave a five-year fixed rate agreement.
Some
penalties
could even go beyond the fixed-rate period. This would be
an "overhanging
redemption penalty". Always read the small print
and ask as many "stupid questions" as you feel like.
You must be clear on what everything means.
Related topics Should I go for a fixed rate mortgage or a discount rate?
Related topic Should I fix my mortgage for 25 years?
Plus Pros and Cons of Fixed Rate Mortgages
To
help you decide what length of fix or discount to take, read
What
length of deal should I choose?
To find out more about redemption penalties, go to Early
redemption penalties explained.
For more on interest rates generally, see What
is a standard variable rate?
To check the Best Buy Tables for todays best value Fixed Rate mortgages with NO extended redemption penalties / overhanging tie ins Click here
Read On About
Variable Rate
Capped Rate
Discounted
Rate
Read On
Interest
only mortgages
Interest repayment
arrangements
Read On / Mortgage Guide
Choosing
a Mortgage
Different Mortgage Types
Re
Mortgages
How to Find your Mortgage
Mortgages in Principle
Read On
Guide to Buying Home in the UK
Guide to UK Home and Mortgage Insurance
Back to A to Z Mortgages UK List
Read more about Types of Mortgages
See contents of Full Mortgages Guide
See contents of Home Buyers Guide
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The
two major varieties:
Repayment
mortgages
Interest
only mortgages
Then
mix in the various:
Interest
repayment arrangements
Finally,
to cover all the different types there's a
Complete
A-Z of mortgages
Complete A-Z
All UK Mortgage types
100%
Mortgages
Base
Rate Trackers
Bridging
Loans
Bad
Credit Mortgages
Buy to Let
Calculators
for Mortgages
Cashback
Mortgages
Capped
Rate
Costs
of a Mortgage
Current
Account Mortgages
Discounted
Variable Rates
Equity
Release Mortgages
Endowment
Mortgages
Expatriate Mortgages
First
Time Buyer Mortgages
Fixed
Rate Mortgages
Group
Mortgages UK
Interest
Only Mortgages
Investment Mortgages
ISA
Mortgages - UK
Part
and Part Mortgages
Pension
Mortgages
Prime
Mortgages
Repayment
mortgages
Shared
Ownership Mortgages
Standard
Variable rate
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Mortgage
Basics
How
to Choose your Mortgage
Types of Mortgage
Where to Find Your Mortgage
Getting a Mortgage in Principle
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