What constitutes best fixed rate mortgage deals?
If you are intending to buy a home, you will probably be researching all the options available to you - but what can be considered the best fixed rate mortgage deals?
This will largely depend on your financial situation. Fixed rate mortgages allow you to pay the same amount of interest over a certain period of years, which will be specified when you decide to go ahead. Best fixed rate mortgage deals can span different periods, from two to ten years. It is best to consult an expert when choosing the best fixed rate mortgage deals to ensure you opt for the plan that best suits your individual situation and needs.
What advantages will the best fixed rate mortgage deals offer?
With fixed rate mortgages, you will find that in the first few years you can often benefit from lower interest rates, while you will also be shielded from any increases to the Bank of England's base rate.
Searching for the best fixed rate mortgage deals can also mean you find budgeting for the cost of your home easier, as you will know exactly how much you will be paying each month. This could then help you to plan the rest of your finances in turn. (For further information on planning your finances towards the end of your career, please see our information on the use of a pensions calculator and retirement calculator.)
Those considering the best fixed rate mortgage deals should be mindful that this type of mortgage comes with early redemption penalties, meaning you will incur costs should you wish to terminate your fixed rate mortgage agreement early. In some best fixed rate mortgage deals, this can also extend past the fixed rate mortgage period.
What are remortgage deals?
After searching for the best fixed rate mortgage deals and spending some happy years in your home, you may want to look into remortgage deals.
These involve changing your mortgage while remaining in your existing home, be that by switching your lender or staying with the same provider but changing your mortgage plan.
There are many reasons to consider remortgage deals, not least of which is to take advantage of the constant competition within the mortgage market. By opting for remortgage deals, you will often find you benefit from more competitive prices - and therefore save money.
The benefits of remortgage deals
Remortgage deals can benefit you in several ways, whether you are simply looking for the latest best arrangements, or if there is something in particular you would like some extra money for.
Suitable for a range of situations, you will find remortgage deals can help you to finance business loans or to help raise funds for home improvement work. Remortgage deals can even be used to consolidate debt, which is especially useful if you cannot raise funds elsewhere.
Moreover, there is also no stamp duty to pay on remortgage deals.
Other points to consider when looking at remortgage deals include the valuation and arrangement fees, as well as various other costs that can be incurred during the process. It is important to speak to a professional to ensure you are selecting the right option for your financial situation.
Meanwhile, organisations such as the Financial Services Authority offer free and impartial details on the various plans, such as fixed rate mortgages or remortgage deals, available.