If you go to an independent mortgage adviser like Mortgage Required who are not restricted to just one lender, then you will see lots of different mortgages, all with different terms. Some have a low starting rate of interest, some low arrangement fees. Others will have capped or fixed rates of interest for 2, 3 5 or even 10 years. The choice can be confusing.
It’s important to consider things like how long you expect to stay at the property, whether you are likely to want to re-mortgage any time soon and what you expect to happen to interest rates in the short and medium terms.
This is important because when a lender offers you a low initial rate of interest or an amazing fixed rate for say two or five years, they are is doing so on the assumption that you will not change mortgage within an agreed period of time.
This is the “tie in period” If you do, then the mortgage agreement will probably set out a variety of penalties and fees that you will be required to pay. The fee amount will vary but the period during which such a fee may be charged is sometimes referred to as the ‘tie-in period’. The fee is usually referred to as an ‘early redemption penalty’.
In most cases, if a fixed or capped rate of interest is for 3 years then the tie-in period is likely to reflect this.
Contact us on 01628 507477 for more information or to speak to a mortgage adviser.
Download our Free First Time Buyers Guide
Recent posts
Many households are still being affected by the high cost of living, with several people worrying about how they can make ends meet on a monthly-basis. Unfortunately, the cost of bills including, water, council tax, and energy are still rising. Here are some things you can do.
The Renters’ Rights Bill represents a significant milestone designed to enhance the rights and protections of tenants in the rental market. This comprehensive bill aims to foster a more balanced and fair rental sector, ensuring that tenants can enjoy greater security and equitable treatment. It is likely to become law in late 2025.
Limited Company vs Single Name Buy to Let
14 days ago
Owning a buy-to-let property in your sole name versus through a limited company each has its own set of advantages and disadvantages.
Top 10 property price hotspots in 2024
20 days ago
Data from Rightmove shows that Sunbury-on-Thames in Surrey was the number one house price hotspot in 2024. The prices in this area climbed an impressive 12.5% - increasing from an average price of £527,005 in 2023 to £592,926 in 2024.
Buy to Let Stamp Duty Changes April 2025
23 days ago
On the 31st October 2024 stamp duty for those purchasing additional properties increased by 2% from 3% to 5%.
From 1st April 2025 the threshold will be reducing from £250,000 to £125,000
Where did Londoners move to in 2024?
28 days ago
Research from Metro shows that those who chose to move home didn’t actually move that far away. With a 430g pack of chicken costing on average almost double in London than the rest of the UK, it's no wonder some people are choosing a change of scenery to save a few pennies.
Reasons to get a Buy to Let Mortgage
20 Jan 2025
Following recent changes in the Buy to Let market, some investors may find this product less appealing. However, if done correctly, building a buy to let portfolio can be very profitable.
Stamp duty: how is it changing in 2025?
7 Jan 2025
Helping you understand the upcoming changes in stamp duty (SDLT) from April 2025.
More information
Trusted by
