Fixed Frame
2011
Fixed Rate Mortgages: Should I Get One?
Choosing a fixed rate mortgage will mean that regardless of what the Bank of England does with the base rate your mortgage payments will stay the same for the period of the fix. Therefore, the same interest rate is charged every month so your budgeting becomes more straightforward. If money is a bit tight this can be very useful.
The time frame for fixed rate mortgages can, in theory, be any length but the ones you will see most frequently are two, three or five-year terms. They can be a lot longer though. Your rate then reverts to the lender’s standard variable rate (SVR) at the end of the fixed period. It used to be the case that fixed rate mortgages were normally a little lower than the SVR but with interest rates now at record lows it is often the other way around.
Fixed rate mortgages with a fixed period of five years or less are known as short term fixes. Long term fixes are from over five years and anything up to 25 years. A mortgage which is fixed for 25 years is also known as a lifetime mortgage but these are very rare.
Generally, tthe shorter the length of the fixed rate mortgage term, the lower the rate will be. This is because you pay a extra for having the extended period of security.. People like short-term fixes as they give the borrower the chance to reassess the market in the not too distant future.
The peace of mind that comes with a fixed rate mortgage is the main advantage of having a one. And if the Bank of England raises its base rate rises during the period you could end up saving yourself thousands of pounds. Conversely, if the base rate falls you could end up paying over the odds and might then wish you had stuck with the standard variable rate.
Other things that you need to be on the lookout for with fixed mortgages are the associated fees. Both arrangement fees and early repayment charges (ERCs) are often higher than with other types of mortgage. ERCs will usually apply for the entire length of the fix and can be as much as 5% of your outstanding loan. The size of the fee usually decreases in steps as time progresses.
It makes sense to talk to a mortgage advisor who can talk you through all the different options as there is a lot to consider. Just make sure they are FSA approved. They will tend also to have access to deals which are not available on the high street.
Vapex Fixed Frame Screens (How to Assemble & Install ) by Visual Apex (16:9 home theater screens)
