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Should I get a Fixed Rate Mortgage?

Should I go on a fixed rate mortgage? Get the right advice here

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 20, 2021

The security offered in a fixed rate mortgage has made them a popular choice for homeowners and mortgage providers’ market pressures have led to increasingly favourable rates.

But with some smaller mortgage lenders on the brink of closure, could these fixed rate mortgage interest rates increase? And with uncertainty in the wider economy, is now the right time to take out a fixed rate mortgage?

The mortgage market is always changing, so the savvy mortgage buyer would do well to stay ahead of the game with careful research and getting the expert advice.

Should I get a fixed rate mortgage?

Whether  you should get a fixed rate mortgage will depend on the specifics of your financial situation and on wider economic factors.

The main advantage of a fixed rate mortgage is that it offers the security of guaranteed interest rates. This means your monthly repayments will remain the same for the duration of your fixed mortgage period and you’ll have certainty in your financial planning. The usual length of a fixed rate period is between 1-10 years, and the interest rates will rise in line with term length.

A fixed rate mortgage may seem like the safest route to take for those without a significant financial buffer, but the interest rates are often higher than in a variable rate mortgage.

So before you take out a fixed rate mortgage, it’s good to learn about situations in which the alternative, a variable rate mortgage, may be the preferred option. For best results in your mortgage search speak to an expert mortgage broker: the right financial advisor will easily be able to guide you to your most suitable mortgage type and deal.

This is where Online Mortgage Advisor is well placed to help you, we’ve helped connect hundreds of clients to the right mortgage broker for their situation. Give us a call on 0808 189 2301 or make an enquiry online.

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Should I get a fixed or variable rate mortgage?

Here are a few questions to consider when deciding on which mortgage type to get:

  • Could you afford fluctuations to your monthly mortgage repayment?
  • How steady is your income and how is it likely to change over the years?
  • How much can you afford to pay in monthly repayments right now?
  • What is your financial risk appetite?
  • What are the current interest rate trends which impact variable-rate mortgages?

How much you will repay in a variable rate mortgage depends on how the wider economy and financial market is behaving. This often makes it trickier to secure variable rate mortgages without the help of a specialist who understands current and future interest rate trends.

That’s why getting help from an expert broker who can offer you quality tailor-made advice on mortgages is recommended. Online Mortgage Advisor can assist you in getting the results you need in your mortgage search by connecting you with the right specialist – make an enquiry to get started.

Should I get a long-term fixed rate mortgage?

The answer to this question will depend on how long you need certainty for. Since most fixed rate mortgages have a 10 year limit on the fixed period, you may be wondering if you can take out a longer-term fixed rate mortgage.

In the UK it’s not currently possible to take out a 20 year fixed term mortgage, but there are increasing numbers of providers offering 10 year fixed rate mortgages. However, some providers of longer-term fixed rate mortgages require a higher mortgage deposit, so getting a long-term fixed rate mortgage may not be the most affordable option.

Many lenders will automatically place their customers onto a variable rate mortgage when the fixed rate mortgage term expires, so it’s important to understand the details of providers’ policies and what your long-term mortgage options are.

An expert mortgage broker can help you compare all the options on the market and decide if you should do a fixed or variable rate mortgage. Give us a call on 0808 189 2301 or make an enquiry.

When should I get a fixed-rate mortgage?

Timing is everything when it comes to mortgages. Market conditions are currently favourable for taking out a good deal on a fixed-rate mortgage, but macro-economics have stirred up uncertainties.

With smaller mortgage providers being gradually pushed out of the market, could fixed-rate mortgage providers be looking to increase their rates? Are Bank of England interest rates going up or down? Would a tracker mortgage or variable mortgage be better suited to you, and how long should the term of your fixed-rate mortgage be?

These are just a few of the factors to consider when deciding on whether you should take out a fixed-rate mortgage now.

All these variables mean that the small cost of working with a mortgage broker usually saves thousands of pounds on mortgage deals over the long-term. Getting expert advice will also give you peace of mind in knowing that you’ve made the right decision for your situation.

Speak to a fixed rate mortgages expert today

Whatever your situation, taking out a mortgage is a milestone achievement and a significant step forward in your financial goals. Deciding on whether you should go for a fixed or variable rate mortgage is one of the most important financial decisions most people will make in their lives and it’s best made with the help of an expert.

Online Mortgage Advisor has helped hundreds of people from across the UK secure their ideal mortgage. The mortgage brokers we work with understand market details and will be able to not only advise you on mortgage type, but also take you directly to the deal that will save you the most money. Give us a call on 0808 189 2301 or make an enquiry. We don’t charge a fee for connecting you to an experienced advisor.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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