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
We look at why mortgage rates increased following the Bank of England's choice to reduce the bank rate, and should you fix now?
UK 2024 Autumn Budget: Housing
21 days ago
On 30th October 2024 the Chancellor, Rachel Reeves delivered the Autumn budget which we had previously been warned would be “difficult”. Below we have summarised the main housing points.
Talking about money with kids
28 days ago
In an increasingly cashless society, money is an intangible concept for children to grasp. In the days of coins and notes, kids could see money as something physical you require to purchase goods and services.
In order to help teach your children about money, we have listed some tips below;
Labour Autumn Budget Predictions: Housing
18 Oct 2024
The UK’s chancellor, Rachel Reeves will deliver the Labour government’s autumn budget at the end of the month, we take a look at what could be announced in relation to housing.
Recent research from Halifax has revealed the most sought-after locations for first time buyers in Britain.
The data which was taken from the Halifax House Price Index looked at areas outside of London where those looking to purchase their first property were buying. Despite high property prices and increased rates, these first time buyer hotspots have remained popular.
How can I look after my mental health?
7 Oct 2024
Taking care of your mental health means looking after your emotional, psychological, and social wellbeing. There are several ways we can practice self-care that will help to improve our physical and mental health. This can help to reduce our risk of illness, manage stress, and boost our energy levels!
First Time Buyer to do List
4 Oct 2024
Buying your first home is very exciting but it can also be very daunting which is why we have set out a “to do list” to help you get started.
Bank of England Holds Base Rate at 5%
20 Sep 2024
With UK inflation remaining at 2.2% which is slightly above the Bank of England’s 2% target, the decision was made on Thursday 19th September to keep the base rate at 5%.
More information
Trusted by
