Current best Fixed Rate MortgagesBest fixed mortgages at present
What is your mortgaged to do? Think about what would if your conditions changed in the near or distant future, you would be able to handle the mortgages you repay.
The majority of fixed-rate mortgages have high prepayment penalties (ERCs), which are to be paid if the loan is repaid within the fixed-rate term. Business is often acceptable, which means that you can theoretically bring them to a new home when you need to move home, although the transfer of your business can be simpler said than done.
Among the best five-year fixed interest rate currently available are the Yorkshire Building Society's 1.74% deals available to home owners wishing to lend up to 65% of their real estate value and First Direct's five-year fixed interest rate of 1.89% available to those wishing to lend up to 75% of their real estate value. Yorkshire Building Society has a handling charge of 1,495, while First Direct has no handling charge, but there is a £490 handling charge.
As an alternative, you can also call 0333 122 6415 for free consultation. Above paper was written for Telegraph Financial Solutions, a member of the Telegraph Media Group. Click here for more information about Telegraph Financial Solutions.
The best fixed-rate mortgages with a fixed interest rate
With a fixed-rate mortgages, you can be sure that your payment will remain the same throughout the entire duration of the credit. It has the added benefit of allowing you to compute your total spending per month without having to worry about variations in your mortgages over the years. By paying a slightly higher interest rate than with a variable rate mortgages (ARM), you get the creditor to undertake to lend you cash throughout the entire duration of the mortgages.
If interest is falling, however, you can always choose to re-finance at a lower interest rate to easily lower your payments or pay out all or part of your accumulated capital. Fixed-rate mortgages are generally available with maturities of 10, 15, 20, 25 or 30 years.
In order to determine the amount of mortgages payable (amortization), the amount of the loans is calculated by dividing it by the number of month of the maturity and adding taxes and insurances. Payouts for 15 and 20 year maturities will be higher than a 30 year borrowing as they will be amortised over a short timeframe. However, the sooner this duration, the higher the real amount actually disbursed, but the greater the saving in the amount of interest disbursed over the duration of the credit.
E.g. a 15-year fixed maturity means that your home is going to be paid off in 1/2 of the amount of money, with enormous cost benefits for you in the interest you will be charged. You can use the credit calculator on our Credit Information page to check these programmes against your current credit amount or a particular sale you are considering.