As longer term fixed rate mortgages are becoming increasingly popular, many borrowers are considering making the change to a long term product. Here are the top three reasons why you should consider changing:
As interest rates are at their lowest for many years, there are plenty of low rate deals to choose from. Some of these deals offer a low interest rate for as long as 10 years and in some cases, even longer. The Bank of England may start to increase interest rates at any time, which would result in mortgage interest rates increasing. Being locked into a long term deal would mean that you don’t have to worry about the extra cost of even a small increase.
Every time you switch to a new mortgage deal, you pay arrangement and valuation fees which are often added to the mortgage. This makes the mortgage even more expensive and if you pay this fee every two years to swap deals, you are potentially adding thousands to your mortgage. If you are considering remaining in your home for a few years, changing to a long term deal would be advantageous.
A fixed rate deal gives you peace of mind so that you can budget and always know what the mortgage payment will be. Swapping to a long term deal will give you peace of mind for a number of years, so you can concentrate on other aspects of your life.
Before signing up for a long term deal, speak to a mortgage adviser who has taken CeMAP training so that you get the best possible deal.
