Lock into low interest rates while you can!

Choosing a fixed-rate mortgage means that your interest rate will remain the same for a set period.

The advantage to this is that, unlike a variable-rate mortgage (such as a discount or tracker), you'll know what your repayments will be each month.

The advantages of doing this include:

• Whatever happens to interest rates, you'll pay the same interest rate for the duration of the fixed-rate term.
• Some lenders offer a ten-year fixed term, but most offer a two-year, three-year, or five-year fixed term.
• You can feel more secure and at ease knowing how much your mortgage will cost for a set period. For this reason, fixed-rate mortgages may be particularly attractive to first-time buyers or landlords planning to use buy-to-let mortgages for a new property with unknown costs.
• Due to the competition between lenders for fixed-rate mortgages, you can get some great deals on fixed-term mortgages.
• As the interest on the total outstanding is calculated, you end up paying the greatest amount at the beginning of the mortgage. If you choose the right deal, you can make significant savings by fixing interest rates for the first two to five years of the loan.

Mortgages with fixed rates of interest are typically two or five-year agreements.

The greatest flexibility is found with two-year fixed rates.

These mortgages are most suitable for borrowers who want to actively manage their mortgage and who regularly switch deals, or those considering moving in the near future.

You can protect your mortgage rate longer with a five-year deal, but they may cost you a little more.

The prospect of locking in a low rate for five years may seem attractive, but you should consider whether you really want to sign an agreement that long.

When you need to pay off your mortgage during a fixed period (such as when you move house or when you remortgage), it can be very expensive due to an early repayment charge (ERC).

If you are unsure how long to fix for, take advice from an independent mortgage adviser.

1. Secure a better rate – Our mortgage experts can access market leading mortgage rates in the UK
2. Better choice - Our mortgage experts can access more lender products than if you were to research the market yourself and go direct
3. Save time - With our service you will be getting advice from someone who already knows the market & will spend time searching it for a good deal, which means you don’t have to.
4. Professional advice - We only work with qualified mortgage professionals who have a duty of care to you meaning they’re on your side. In short you have an expert in their field who will do their best to give you great mortgage advice.
5. Peace of mind - Our mortgage experts provide a fast application process & keep you updated on progress. They are also used to spotting delays and chasing them. 

Getting your original mortgage may have taken a while…

The good news is remortgaging is typically much quicker process & easier to get done.

From start to finish a remortgage will typically take 4 to 6 weeks to complete.

This can be quicker where you have a standard construction property, a good credit record and your income supports mortgage affordability.

You can help speed the process up by getting your documentation lined up ahead of making your remortgage application.

This is where having a mortgage broker looking after your application can make a big difference as they will know how to progress your application and deal with any potential issues.

To talk to one of the remortgage experts we work with complete our quick enquiry form.

A mortgage rate can be fixed for two, three, five, seven and 10 years.

If you select a longer fixed-rate period, the interest rate will generally be higher.

The table below gives you an idea of competitive remortgage fixed interest rates as of May 2022.

*APRC – Annual Percentage Rate of Charge

Factors that may make it difficult to get a fixed rate mortgage include:

• Income – Lenders base their decisions to lend on affordability and your ability to repay the mortgage. If your income does not meet payment multiple affordability criteria, you may not qualify for the loan even if you have family who wishes to support you. If you are unsure whether your income situation is adequate to support a mortgage speak to a specialist family assistance mortgage broker
• Employment history – Lenders will require evidence of your income and if you have only been in employment for a short time or are self-employed this sometimes can make it tricky to find a lender who will lend to you.
• Credit rating –If you have a low/poor credit rating, lenders may decline to offer you a mortgage as it can reflect your previous history in managing your money. If you give yourself time, e.g., 6 months before your mortgage application, you can often improve your credit score rating through proactive management, which may be enough to get you the deal you require. If you are buying a house with a partner, check there are no issues with their credit record before making a mortgage application. You can find out your credit score and record through apps such as Kreditkarma and Checkmyfile.

Fix your mortgage for peace of mind

Considering remortgaging and worried about rising interest rates? You may want to consider a fixed rate mortgage deal. 

A fixed rate mortgage can provide peace of mind that your monthly mortgage payments won’t change during the fixed term, regardless of what happens to interest rates.

According to Legal & General from a survey done in February 2022**:

“The cost-of-living squeeze and rising interest rates are clearly driving borrowers to remortgage and lock into low fixed-rate products that are still available on the market.

Others are exploring alternative means of managing their finances, perhaps by taking out interest-only mortgages.”