Fixed rate mortgages have been an ever present and has become the most popular Mortgage product in recent years, but with attractive variable rate Mortgages on offer, is it time for borrowers to consider other options?
Variable rate Mortgage deal, is it the right choice for me
Variable rates are very competitive at the moment, so if cheap Mortgage payments are what you’re after, it is probably worth considering. However,
remember that variable rates can go up or down, so you could face higher costs if interest rates rise in the near future. Most discounted and variable Mortgages
aren’t linked to the Bank of England base rate so they could go up at the lenders discretion, however, rates are most likely to move with base rate changes.
Just be aware that if rates go up, your Mortgage rate will increase and subsequently your monthly Mortgage payment will also increase. So, if you’re considering a
variable rate mortgage, you will need to insure that you can absorb an increase in your monthly Mortgage payments if rates do rise Bear in mind, that the most
competitive variable rate deals, often carry large fees. Bristol and Bath Financial Services will advise you whether to proceed with a low rate and high fee or a
higher rate with potentially no fee.
The ‘ever present’ fixed rate Mortgage
Fixed rate Mortgages can provide absolute peace of mind that your monthly mortgage payments won’t change if interest there are changes in the base rate.
"The universe of Mortgage lending has gotten to the point where there is a place in it for everybody."
The Bank of England held the base rate at 0.75% again in November and in un-certain times, particularly around Brexit most economic experts are predicting another rate rise. This is where a fix rate mortgage can help, if you are concerned about what will happen with the base rate then a fix rate Mortgage is probably the right option for you. Although fix rate mortgages are slightly more expensive per month then the most competitive variable rate mortgages the small extra cost now on a fix rate mortgage might be worthwhile if rates do increase If you’re not sure which type of mortgage is right for you, Bristol and Bath Financial Services can talk you through all the available options and recommend the right deal for you based on your individual circumstances and requirements.