Fixed Rate Mortgages explained, and details of how Shire Direct can assist with a Fixed Rate Mortgage...
Fixed Rate Mortgages are a type of mortgage whereby the interest charged is fixed for a specified period.
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Here we explain in greater detail what a Fixed Rate Mortgage is, and how Fixed Rate Mortgages work. We also discuss the various fixed rate mortgage advantages and disadvantages, and how we can help with a fixed rate mortgage or remortgage, even in the trickiest of circumstances!
Table of Contents:
What is a Fixed Rate Mortgage?
So, you might be asking yourself just exactly what is a Fixed Rate Mortgage? Well, as we touched upon briefly during the introductory paragraph above a Fixed Rate Mortgage is one where the interest charged is fixed for a specified period.
For example, the interest rate on a fixed rate mortgage may be fixed for the first 2 years, 5 years, or sometimes even for the term of the loan, although these remain rare in the UK housing market.
As with most things in life, Fixed Rate Mortgages can have their advantages and disadvantages, which we'll discuss next.
Fixed Rate Mortgage advantages
A fixed rate mortgage can have its advantages, and can be most beneficial in the following circumstances:
- With a Fixed Rate Mortgage, you'll know exactly how much your repayments will be during the fixed rate period, and therefore will ensure you can budget with confidence.
- You will also be able to fix your interest in a rising market with a Fixed Rate Mortgage, enabling you to save money.
The disadvantages of Fixed Rate mortgages
Unfortunately, Fixed Rate mortgages can have their downsides too:
- Fixed Rate mortgage products usually come with large scheme fees
- If Interest rates fall sharply, you could be locked in to a high rate, and be paying over the odds whilst others see their mortgage costs coming down
- Early Repayment Charges (ERC's) can be very expensive if you need to get out of the arrangement quickly
- However, if interest rates have risen substantially during your fixed rate period, you run the risk of a payment shock when there is a large jump in your monthly payments when you reach the end of the fixed period
Need help finding a fixed rate mortgage product?
So, if you need help finding a fixed rate mortgage, why not talk to us here at Shire Direct. We can even help in the trickiest of circumstances! A call to one of our specialist, experienced and professionally qualified mortgage advisors will put you in the picture. We'll carefully assess your circumstances, needs and aspirations and come up with a rapid in-principle decision.
Hopefully, we've managed to give you some insight into Fixed Rate Mortgages and their pro's and con's. If you are interested in exploring your options, don't hesitate to Contact Us, after all you've nothing to lose, and everything to gain! We believe you'll find our approach to be positive, helpful, friendly and professional, and we'd be delighted to hear from you. Call us now on Freephone 08000 282 281 (lines open daily until 10pm), or enquire online anytime. We'd be delighted to hear from you, whatever your circumstances!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.