Best Fixed Rate Mortgage RatesHighest fixed-rate mortgage rates
One three fixed rate mortgage is just a mortgage that keeps the same interest rate for the first 3 years you have it no matter how much your lender will raise or lower its interest rates.
At the end of the first 3 years, the interest paid by you is transferred to the SVR of your creditor. Loan rates can last for little more than 2 or as much as 10 years, but on this side, we are going to look at 3 year mortgage only.
Shall I fix my mortgage for three years? When you fix your mortgage for 3 years, your montly payment will not vary for the period of your 3-year introduction period. Floating mortgage rates can raise their interest rates at any given moment, which increases the amount you need to repay your creditor.
You can be sure of this because you don't have to be concerned about interest rates soaring. But if mortgage rates fall, you'll still have to keep paying the fixed amount you arranged with your creditor! For whom is a 3-year fixed-rate mortgage intended? Put quite bluntly, three-year mortgage loans are best suited for those who would find it difficult or impractical to make their mortgage payment successfully, whose interest rates should rise over the next 3 years.
Further fixed maturities are possible, from less than 2 years up to 5 or 10 years. Longer maturities of the redemption collateral can be achieved by selecting a longer-term fixed interest rate. In addition to safety, with a longer time fixed rate, you don't have to look for a new mortgage every year and paying the charges associated with a new mortgage like you could do with a short time fixed rate mortgage like a 2 year mortgage.
In addition, if a 3-year maturity allows you to recharge your mortgage after three years, while a 5 or 10 year mortgage would require for you to service longer. Fixed-rate mortgages usually calculate a fee if you want to modify or pay back your mortgage early, thereofre that it is prudent to keep these fees in mind when you decide which longer-term fixed-rate mortgage are to be taken.
If you look at our best purchases, you will see that we have chosen the best 3 year fixed rate mortgages from different credit to value levels to give you a better view of what we have to offer. In general, the more you can invest in a deposit, the better your mortgage rate will be as you are less of a threat to the creditor.
Watch out for the charges! Sitting down, always find out how much you are going to be billed at the beginning of your mortgage and when your mortgage ends. Note that the initial interest rate for a short-term fixed-rate mortgage is lower than that for a 3-year fixed-rate mortgage, or if you select a variable-rate mortgage.