Fixed Rate Mortgages
Based in London, with branches in Beckenham and Bromley but working with clients nationwide, Elevate is a mortgage advisory service dedicated to providing bespoke and personal financial services. One of our areas of specialisation in 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 length of time. This means 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 rate of interest 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 biggest 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 rates of interest 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?
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 insights and your personal expectations of the BoE base rate.
If you are unsure, our team can explain the advantages and disadvantages of fixing your mortgage for a short or long term.
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. It is not impossible to secure a fixed rate mortgage with a deposit as low as 5% of the property’s valuation.
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 is likely to 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 not more difficult to qualify for compared to other types of mortgages. You’ll still need to go through 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 with less worry. The best mortgage advisers will assist you in finding the most appropriate and advantageous fixed rate mortgage for your specific circumstances.
Our mortgage broker team is based in Bromley and Beckenham, and help client across London. If you’re looking for whole of market fixed rate mortgage advice get in touch today.
Based in London, with branches in Beckenham and Bromley but working with clients nationwide, Elevate is a mortgage advisory service dedicated to providing bespoke and personal financial services. One of our areas of specialisation in 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 length of time. This means 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 rate of interest 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 biggest 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 rates of interest 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?
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 insights and your personal expectations of the BoE base rate.
If you are unsure, our team can explain the advantages and disadvantages of fixing your mortgage for a short or long term.
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. It is not impossible to secure a fixed rate mortgage with a deposit as low as 5% of the property’s valuation.
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 is likely to 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 not more difficult to qualify for compared to other types of mortgages. You’ll still need to go through 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 with less worry. The best mortgage advisers will assist you in finding the most appropriate and advantageous fixed rate mortgage for your specific circumstances.
Our mortgage broker team is based in Bromley and Beckenham, and help client across London. If you’re looking for whole of market fixed rate mortgage advice get in touch today.
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