Fixing a mortgage rate in the short-term, say 2-5 years, is worth considering, particularly if you are prepared to re-mortgage regularly. The government is keen to promote 25-year fixed rate mortgages, but, as yet, there is very little appetite for these deals among UK homebuyers.
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The big question you need to answer here is this: how important is the security of a fixed rate mortgage loan to you? If your household income is about to come under pressure, perhaps because you or your partner is about to stop working for a time, then the certainty that your mortgage repayments will not grow in the near future could be more important to you than getting a really cheap mortgage.
What penalties will my mortgage loan have?
This varies from one mortgage loan to the next but is one of the things that should be checked very carefully before committing to any mortgage loan. You should always check what the early redemption penalties are, and also if there is an extended redemption penalty that applies if you re-mortgage after the end of your fixed-rate period. NB: EveryInvestor’s Best Buys do not have extended redemption penalties.
Click here to go to our Fixed Rate Mortgage Best Buys.
