Blog

« BACK TO BLOG LIST

Advantages and disadvantages of fixed rate mortgages

1st August 2017

bespoke independent mortgage advisor
When it comes to securing your next mortgage, you’ll need to make the decision as to whether to go for a fixed rate or adjustable rate mortgage. By speaking to relatives and friends who have gone for the fixed rate option you may have already heard tales of great long-term benefits – or missing out on potential savings.

So, here is a quick guide to the basic advantages and disadvantages of fixed rate mortgages.

Advantages

The number one advantage, and the reasoning behind fixed rate mortgages, is that you can lock in a set mortgage payment amount each month and sleep easy at night knowing that, regardless of economic fluctuations, that is all you will be paying. If you don’t have a lot of room in your monthly budget for extra outgoings then a fixed rate mortgage is very appealing as you won’t have any surprises and can plan ahead as far as you lock that rate in for.

Furthermore, if interest rates are currently very low and, after securing your payment plan, they increase, then you will benefit from making savings whilst those on variable rate mortgages lose out.

Disadvantages

The obvious flip side of this benefit is that if interest rates then fall, then you are going to miss out on the extra savings you’d have made by going for a variable rate mortgage. This could work very badly in your favour if the Bank of England were to decide to cut them low and hold them there for an extended period of time. If you were to decide you’d like to refinance your home or to switch to a variable rate plan, then you’ll find yourself with no room to manoeuvre.

However, there are other options aside from a fixed rate or variable rate mortgage, such as the ability to go half and half. It all depends on your personal financial circumstances and working out what is best for you.

It is usually better to speak to a mortgage advisor who has the specialist in-depth knowledge into this arena. We offer mortgage advice in Bristol and do so in a professional and impartial manner. If you think you’d like to find out more and speak to someone with the right industry knowledge, then get in contact with us today.

GET IN TOUCH | CONTACT

Have a question?
Would you like a meeting?

0117 3704258

enquiries@bespokeifa.co.uk

Suite 2, Knightwood Court, Mead Road, Bristol, BS34 8PS





Suite 2, Knightwood Court, Mead Road, Bristol, BS34 8PS

Web design by Drink Tea Eat Biscuits

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

https://bristolmortgageadvisers.com is owned and operated by BMA Bristol Limited trading as Mortgage Advice Bureau Bristol North (Company No: 09911363) who are registered as a Data Controller under the Data Protection Act 1998.

There may be a fee for mortgage advice which is only payable once you receive a full mortgage offer from a lender. The precise amount you will pay will depend upon your circumstances. Speak to an advisor for further details.

Our Bristol based Independent Mortgage Advisors offer mortgage advice at our offices or in the convenience of your home in Bristol and Weston super Mare in the following locations only; Almondsbury, Backwell, Bedminster, Bradley Stoke, Brentry, Bishopsworth, Chipping Sodbury, Clifton, Downend, Eastville, Easton, Emersons Green, Filton, Filwood Park, Fishponds, Flax Bourton,Frenchay, Hanham, Henbury, Hengrove, Henleaze, Horfield, Hotwells, Keynsham, Kingsdown, Kingswood, Knowle, Lawrence Hill, Lawrence Weston, Leigh Woods, Lewin's Mead, Lockleaze, Longwell Green, Mangotsfield, Monks Park, Montpelier, Oldland Common, Patchway, Portishead, Redcliffe, Redfield, Redland, Sea Mills, Severn Beach, Shirehampton, Sneyd Park, Southmead, Southville, Speedwell, Spike Island ,St Agnes, St Andrews, St Anne's, St George, St Jude's, St Paul's, St Philip's Marsh, St Werburgh's, Staple Hill, Stapleton, Stockwood, Stoke Bishop, Stokes Croft, Thornbury, Totterdown, Tyndalls Park, Warmley, Westbury on Trym, Westbury Park, Weston super Mare, Wotton-under-Edge, Whitchurch, Whitehall, Willsbridge, Windmill Hill, Winterbourne, Withywood, Yate, Yatton & Peasedown St John, Corsham, Chippenham, Bath, Chipping Sodbury, Thornbury