Britain is facing a time of uncertainty, as the country prepares to exit the EU. A general election is to be held shortly, while elections are also being held in other European countries. As a period of economic uncertainty approaches, many home owners will be considering a fixed rate mortgage to guarantee the same rate of payments for a while.
First time buyers and those who are re-mortgaging often consider a two-year fixed rate product, so that they have the benefits of being able to budget for a couple of years. However, home owners who opt for a two-year fixed rate deal now, will have to search for a new deal in 2019, which is when the UK will be in the process of leaving the EU. This could be a very uncertain period, especially if the swap rates for banks rise.
This is just one of the reasons why a long-term fixed rate product is an attractive option for home owners currently. Interest rates are at their lowest for many years, and it is unlikely that they will fall any lower. Another benefit of these deals is that you won’t have to keep paying the costs to re-mortgage, which can be quite expensive.
A long-term fixed rate deal may not be suitable for everyone as there are different circumstances to consider. However, a mortgage adviser has spent a considerable amount of time on a CeMAP course, so they are able to help home buyers find the most suitable deal.
