With so many different types of mortgage to choose from, it can be impossible to know which to go for. The good news is that remortgaging is always and option, switching to a better deal as you find it, however it is always a good idea to choose the best deal possible for the forseeable future if only to save you time and hassle when going through the already stressful mortgage process.
A fixed rate mortgage may be the answer for you if you value stability in your financial workings. With a fixed rate mortgage, the interest you pay stays at the same rate for the term of the deal. This will not be for the duration of the mortgage (usually around 25 years) but you can choose deals which last for up to 5 years providing you with stability for a long time to come. At the end of the fixed rate it is always possible to move your mortgage to another money saving deal, although you may have to pay a transfer fee. With the economy currently being quite unstable and fears over the base rate rising, having a fixed rate mortgage can give you one area of security as you know exactly what your monthly repayments will look like for the future and allows you to budget in the right amount each month to make these repayments.
You may end up paying more than those on a tracker mortgage (a mortgage with which the amount of interest fluctuates with the base rate. These mortgages tend to charge a cheaper premium than fixed rate mortgages initially, but you run the risk of the mortgage going up past what you can afford). However, although this can be offset by the peace of mind you are likely to get knowing that whatever happens to the base rate your mortgage will remain the same.
To make your decision easier, try using a free mortgage calculator online to find out what your monthly repayments look likely to be with the fixed rate and repayment term you have chosen and work out if you can afford that first. You can find a good uk mortgage calculator on most comparison sites and can even compare with, for example, an offset mortgage calculator to see if you are making the right choice for your situation.
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