If you believe that the general trend of interest rates will be upwards in the near future, taking out a fixed-rate mortgage deal enables you to safeguard your monthly mortgage repayments at a set level.
The price you pay for locking-in a mortgage rate for, say, five years, is that the mortgage rate you pay will be higher than those available on tracker or discounted rate mortgages. In general, the longer the period of the mortgage rate fix, the higher your interest rate will be.
If you want to re-mortgage, perhaps because interest rates are dropping or because your home has grown in value, and your fixed-rate period has not yet expired, then you will usually have to pay an early redemption penalty.
EveryInvestor excludes mortgages with extended redemption penalties from our list of Best Buys. This means that, if you select one of our fixed-rate mortgage Best Buys, you are free to re-mortgage without penalty once the fixed rate period has expired.
If you choose not to re-mortgage after that point then you will start to pay interest at your mortgage lender’s Standard Variable Rate (SVR). These vary but are generally uncompetitive when compared to the latest discounted mortgage deals available.
Click here to go to our Fixed Rate Mortgage Best Buys.
