Fixed Rate Mortgages

A fixed-rate mortgage offers peace of mind and stability as your interest rate remains unchanged for a specified period. At MortgageTek, we provide you with the certainty you need to plan your finances effectively and avoid unexpected payment increases.

How Does a Fixed-Rate Mortgage Work?

With a fixed-rate mortgage, your interest rate remains consistent throughout the agreed-upon period. Whether you choose a two-year or five-year term, you can enjoy the confidence of knowing that your monthly repayments will stay the same.

When the fixed rate period ends, you may transition to your lender’s standard variable rate, which is typically higher. To mitigate this, many people opt to remortgage to a new deal that aligns with the expiry of their fixed rate term.

Exploring Fixed-Rate Mortgage Terms

While two-year and five-year terms are the most common for fixed-rate mortgages, options are available for one, three, seven, and ten years. Although less common, some lenders may offer longer terms of 15 or 40 years.

Choosing the Right Mortgage Term

Determining the best term for your fixed-rate mortgage depends on your circumstances and outlook on interest rates. A five-year or longer fixed rate may be ideal if you prefer long-term certainty without the hassle of remortgaging in a few years. Additionally, locking in the current rates for an extended period can be advantageous if you anticipate an increase in mortgage rates.

However, it’s essential to consider that interest rates may decrease. If you choose a lengthy fixed-rate term, you might miss out on lower rates unless it makes financial sense to pay the early repayment charge and switch to a competitive deal. On the other hand, shorter terms may be more suitable if you plan to move house soon.

Determining Your Interest Rate

Several factors influence the interest rate on your fixed-rate mortgage:

1. Length of the fixed rate period: Typically, longer-term fixed-rate mortgages come with slightly higher interest rates than shorter-term options.

2. Loan-to-value (LTV): The proportion of your property’s value that you need to borrow affects your interest rate. Higher LTVs generally result in higher interest rates due to perceived increased lending risk.

3. Arrangement fees: Some mortgages include arrangement fees that borrowers must pay. Lower-interest products often come with fees, while those with no fees tend to have higher interest rates. To determine the most cost-effective option, it’s crucial to compare the total cost, including fees.

4. Credit standing: Demonstrating a solid credit history and score can positively impact the interest rate you receive, as lenders consider this when assessing your risk profile.

Experience Certainty with MortgageTek

At MortgageTek, we offer a range of fixed-rate mortgage options for contractors tailored to your needs. Our team of experts is ready to guide you through the process and help you make an informed decision. Discover the security and stability a fixed-rate mortgage brings

– explore your options with MortgageTek today!

Take advantage of this opportunity to secure your financial future.

Contact us now and unlock the power of a fixed-rate mortgage!