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How fixed rate mortgages work

how fixed rate mortgages work

Fixed Rate Mortgages

With a fixed rate mortgage, the interest rate is guaranteed to remain the same for a set period of time, typically one, two, three, five, or ten years.

This gives the advantage of regular, unchanging monthly repayments during the fixed rate period. After the fixed rate ends, the loan normally reverts to the lender's standard variable rate.

There are a couple of disadvantages to fixed rate mortgages. Firstly, if interest rates should fall during the fixed rate period you will not benefit from the savings like you would with a variable rate mortgage. Secondly, the arrangement fees on fixed rate products are sometimes higher than other types of mortgages.

If you would like further information, please complete our online enquiry form

and we will arrange for a mortgage consultant to contact you.

This website is provided as an independent marketing website.

We are neither a mortgage lender nor an independent financial adviser and, as such, are unable to offer financial advice.

Enquiries generated via this website are passed on to independent financial advisers and mortgage brokers.

Think carefully before securing other debts against your home.

Your home may be repossessed if you do not keep up repayments on your mortgage.

This website has been approved by SN Financial Services Limited for the purposes of s. 21 of the Financial Services and Markets Act 2000.

SN Financial Services Limited is authorised and regulated by the Financial Services Authority. Firm Reference number 231014.

Category: Credit

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