What to do when searching for that best fixed rate mortgage deal

There are many mortgage types, fixed, discount, capped, cap and collar and variable being the most common. A fixed rate mortgage means that the interest rate (the amount that the mortgage lender charges you) is fixed for a set term (a term is an amount of years normally between 2 to 5 years). If your interest rate is fixed, you monthly payments are also fixed.

There are pros and cons to a fixed rate mortgage:

Pro: During the fixed rate you know what your payments will be every month helping you plan your finances and also removing any worries if interest rates in general rise.

Con: If interest rates drop in the UK then better deals may be available and you would be locked into the deal thus loosing the savings on offer.

To gain the best fixed rate mortgage deal you need to….

1. Know how much your house is worth if you are remortgaging (why not get a local valuar in for free from an estate agents to find out) or if you are buying another property set an amount you wish to go up to

2. Know how much you need to borrow

3. You comparison websites such as www.moneysupermarket.com and compare them

4. Get independent advice from an independent mortgage adviser.

We wish you luck in finding the best fixed rate mortgage deal for your circumstances. Don’t rush the reviewing process of all the lenders and deals out there as your mortgage will be the biggest financial commitment you’re likely to ever have.