Based in London, with branches in Beckenham and Bromley and working with clients nationwide, Elevate is a mortgage advisory service dedicated to providing bespoke and personal financial services. One of our areas of specialisation is helping clients find affordable and suitable fixed-rate mortgage deals.
What Is a Fixed-Rate Mortgage?
A fixed-rate mortgage is a mortgage where the interest rate you pay is fixed for a specified. This means that even if the Bank of England changes the base interest rate or the mortgage lender changes their own interest rates, the interest rate you pay will remain the same during the fixed period.
Fixed-rate mortgages may include a fixed interest rate for as long as five years or more. After this period, the fixed-rate mortgage will change to a variable-rate mortgage.
What Are the Advantages of a Fixed-Rate Mortgage?
The most significant advantage of a fixed-rate mortgage is that homeowners know exactly how much their mortgage repayments will be during the fixed-rate period. There can be no changes during this time, providing the added feeling of security and stability.
A potential advantage of a fixed-rate mortgage is that you could avoid paying higher interest rates if the BoE base rate increases. Although, this benefit will not always come to fruition.
If you need assistance deciding if a fixed-rate mortgage is for you, our mortgage advisers are on hand to offer their support and expertise.
How Long Should You Fix Your Mortgage For?
Most lenders offer fixed-rate mortgages for two to five years. Some even offer these products for as long as a decade. Deciding on how long to fix your mortgage for will depend on economic conditions and your personal expectations.
If you are unsure, our team can explain the advantages and disadvantages of fixing your mortgage for the short or long term.
IS A FIXED-RATE MORTGAGE RIGHT FOR ME?
Fixed-rate mortgages are suitable for people who want to know exactly how much they will be paying each month without the risk of any changes to the interest rate during the fixed term. This can be particularly helpful if you have a tight budget and want to plan your finances accordingly.
However, fixed-rate mortgages may not be ideal for everyone. For example, if you believe that interest rates may decrease in the near future, a fixed-rate mortgage could mean you end up paying more interest than you need to.
Our mortgage advisers can help you determine if a fixed-rate mortgage is the right choice for your financial situation.
Fixed-Rate Mortgages FAQs
What kind of deposit is needed for a fixed-rate mortgage?
Fixed-rate mortgages usually require a deposit of 10% of the property’s valuation. However, securing a fixed-rate mortgage with a deposit as low as 5% of the property’s valuation is not impossible.
How is a fixed-rate mortgage affected by the base rate?
During the fixed-rate mortgage, the rate of interest you pay is not affected by the Bank of England’s base rate.
What happens when the fixed rate ends?
After the fixed rate ends, your mortgage will likely switch to a variable mortgage. If your mortgage converts to a variable mortgage, the rate of interest you pay is likely to follow the base rate, meaning your payments could increase or decrease at this stage.
Are fixed-rate mortgages more difficult to qualify for?
In general, fixed-rate mortgages are relatively easy to qualify for compared to other types of mortgages. However, you’ll still need to undergo a detailed and rigorous process.
Should I Use an Adviser to Find a Fixed-Rate Mortgage?
The fixed-rate mortgage market is saturated, making it difficult to know where to turn. Having a professional mortgage adviser by your side will help you go through the process. The best mortgage advisers will assist you in finding the most appropriate and advantageous fixed-rate mortgage for your specific circumstances.
At Elevate, our team of expert mortgage advisers has years of experience in helping clients find the right fixed-rate mortgage deals. We consider your personal and financial circumstances and provide bespoke advice to ensure you make an informed decision.
CONTACT US FOR MORTGAGE ADVICE
Fixed-rate mortgages are an excellent option for those who want the peace of mind that comes with knowing their mortgage payments will stay the same for a fixed period. The ability to budget effectively without fear of any rate increases, combined with the feeling of stability and security, is what makes fixed-rate mortgages so popular.
At Elevate, we understand that the mortgage market can be overwhelming, and we're here to help. Our team of expert mortgage advisers can assist you in finding the most appropriate and advantageous fixed-rate mortgage for your specific circumstances, ensuring you make an informed decision that is right for you.
Our mortgage broker team is based in Bromley and Beckenham and help client across London. So, if you’re looking for whole-of-market fixed-rate mortgage advice, get in touch today.
Read less