Variable Vs Fixed Rate Mortgages

 

The Difference Between Variable and Fixed Rate Mortgages

Variable rate mortgages are different from fixed rate mortgages because they change over time. Fixed rate mortgages stay constant throughout the life of the mortgage and monthly payments also stay the same. Also did you know that 7 out of every 10 mortgages are based on fixed rates? This means there are only a small portion of home loans that are variable based and are only between two and five years in length. Sheengold Mortgage Brokers are based in Kent, United Kingdom and provide services to all UK customers.

There are times when you can score a really good deal with a lender and get a discounted rate that is usually a fixed rate that usually lasts only a short time and then is renegotiated after the period of time expires. Once the deal has expired most lenders will charge the bank rate + 2% which is standard with most companies but can be lower or higher.

Discounted Mortgages

These types of deals are risky but can pay off with a steady bank rate. If you feel that the bank rate is very volatile in your market area you may want to stick with a fixed rate term to ensure the market doesn’t affect your rates. Lenders will often make these deals look stellar by dressing them up with a very low discount rate of between 1% and 2% which is initially lower then standard fixed rates. If you feel your market area is very stable you may want to pursuer these types of deals further. If you are in the United Kingdom Sheengold Mortgage Brokers can help. Give them a call on 01634-404183 for a free no obligation qoute today.

Standard Variable Rates

Standard variable rates are usually for borrowers who don’t closely watch their mortgage deal and don’t really care about other competitive offers on the market. This type of rate follows the move of the bank rate to the maximum. It is best to find the best possible deal by filling out our application form. We have specialists who will find the best deal available and then notify you of what options you have available to you.

 

To find out how much your variable or fixed rate mortgage will cost click quote and apply button below to fill out our online application form or give us a call on 01634-404183.

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