Find the best fixed rate mortgage for you with Deal Direct.
In today’s market, knowing whether a fixed rate mortgage is the right home financing solution for you in the first place can be a challenge. After that, you are faced with sifting through thousands of products with rates set at different levels and a dizzying array of incentives, terms and conditions. How then do you determine which fixed rate mortgage matches your circumstances and meets your borrowing needs?
Fortunately, help is available. Consulting with leading independent mortgage broker, Deal Direct, can clarify what are otherwise extremely muddy waters by answering some important questions.
Is a fixed rate mortgage the borrowing solution you need?
Fixed rate mortgages are extremely popular at the moment. Their most important advantage is that you know what your monthly repayments will be from the outset. At this time of economic uncertainty in the UK, knowing how much you need to make your mortgage repayment every month creates a level of security. They also help with:
- creating stability
- being able to plan for the future
- being able to save
in a way that other types of mortgages can’t.
Are there drawbacks to a fixed rate mortgage?
A fixed rate mortgage isn't for everyone and there are factors to consider before you start searching for one. These include your future plans and the level of flexibility you think you'll need.
A positive is knowing what your fixed payment would be but it could also be a negative if rates drop during the term of your fix. While locking yourself into a low rate for a set period of time creates certainty, releasing yourself from a fixed term can be expensive. If your mortgage isn't portable, you may have hefty exit fees to pay.
To construct a detailed picture and tailor the right mortgage solution for you, Deal Direct’s experts would find it helpful to know about your personal and professional circumstances. Things to think about include:
- Do you have children (or plan to) and how old are they?
- What is the likelihood of family moving in with you or moving out?
- What your current employment status is – employed/self-employed/contractor/business owner?
- What is the likelihood of a professional promotion or change of career?
The answers to these questions will help to determine whether a fixed rate mortgage is the right borrowing solution for you or whether another type of mortgage would be more suitable.
Which fixed rate mortgage is suitable for you?
Fixed rate mortgages are available for varying terms including 2, 3, 5, 7 and 10 years.
The length of term you choose will be determined by your individual circumstances and priorities, as we’ve mentioned.
The shorter terms are popular with people who need flexibility and the longer terms for those who want stability. Fixing for a longer term has its advantages in that you know what you will be paying every month, BUT how certain are you at this point in your life that you won’t be moving or you won’t need to release equity to renovate or consolidate debts?
Having said that, fixing for longer terms of 5 to 10 years is becoming more popular as rates are still low. The uncertainty around Brexit is most likely to be responsible for this as borrowers fear further hikes in the base rate. A higher base rate means more expensive mortgage repayments in the future.
What service can Deal Direct offer that other brokers can’t?
The experience that Deal Direct has accumulated over more than a decade has given us an in-depth knowledge of the market that is hard to match elsewhere. Consequently, our advisors are highly skilled with an unrivalled level of expertise.
After so many years finding fixed rate mortgage solutions for borrowers, you might be wondering what they’ve had to say about the level of service they’ve received. You can read their opinions here:
Deal Direct is independent and therefore impartial. We are a ‘whole of market’ broker, which means we can offer a level of choice and objectivity that other brokers can’t. Choosing a broker who isn’t ‘whole of market’ limits your options, which could mean you end up with a fixed rate mortgage that doesn’t serve your best interests.
Consulting Deal Direct means we can offer you unbiased recommendations that are tailored to your individual situation, priorities and needs.
Find the right fixed rate mortgage for you by discussing your requirements with a Deal Direct expert.