With recent rises in The Bank of England base rate and more in the pipeline, many are being tempted by the stability that a five year fix brings. However, it is essential that borrowers know what they are signing up for by taking out a mortgage for five years.
Although most 5 year fixed products are portable and you can therefore take them to a new home if you move, the lender will want to re-assess you and the new property and if you no longer fit to their criteria, they may not approve the move. In this case, you will be charged a penalty if you need to leave the deal early.
With the current climate we are recommending more 5 year products than ever, however they are not right for everyone! Borrowers take 90% mortgages and above will pay the highest rates, and most want to see if their house priced has increased in 2 years which will mean they will qualify for a better rate.
Other reasons clients go for shorter term fixed rates are simply that they are cheaper! It is only after fully assessing client’s needs and expectations that we can make the tight recommendation.
We pride ourselves on providing a service that puts the customer first, finding the right mortgage for your needs now and in the future.
For a free appointment just click here or give the team a call 01628 507477.
Download our Free First Time Buyers Guide
Recent posts
Renters' Rights Act
Today
The Renter’s Rights Bill became law at the end of October, which means it has been signed off by the King, and it is now the Renters’ Rights Act. Despite this becoming law, these changes are likely to start changing within the next six months, with the aim of being fully implemented throughout 2026 and into 2027.
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
Costliest Streets in Great Britain
4 days ago
Recent data from Rightmove shows the most expensive streets in Great Britain, with the majority being situated in the capital.
Best UK Mortgage Rates this Week
5 days ago
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
The Bank of England Governor, Andrew Bailey, has advised that, due to the “very big energy shock” the economy is facing, they won’t be in a rush to increase UK interest rates.
Many homeowners don’t realise that a simple act or oversight could invalidate their home insurance policy. Home insurance is essential in protecting your most valuable assets; however, it is important to understand what affects your cover to ensure you are fully protected.
In certain areas, impressive views are one feature that buyers are willing to pay price premiums of more than 30 per cent.
The UK mortgage market is seeing lenders withdraw deals and hike mortgage rates amid the escalation of conflict in Iran. This isn’t great news for borrowers, with the average rate for a two-year fixed deal sitting above 5%.
More information
Trusted by
