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.