Two Year Fixed Rate Mortgage

Fixed Rate Mortgage for Two years

With a fixed rate mortgage the mortgage rate is fixed for a set period of time. This means that whatever changes occur in the lender's standard variable rate or the Bank of England Base Rate, your repayments will stay the same

Lenders are able to provide fixed rates by obtaining funding from the money markets; this money is then lent to borrowers with a set profit margin. Fixed rate mortgage deals change on a regular basis as each product will have a fixed allocation of funding.

Is a two year fixed rate a good idea?

Fixed rate mortgages suit borrowers who want or need to know exactly what their mortgage repayments are going to be from one month to another. Borrowers who believe that interest rates are likely to increase may also be drawn to fixed rate mortgages.

Things to consider:

Fixed your mortgage could mean that you are committed to the lender during the fixed rate period. If you intend to repay your mortgage early or wish to make lump sum reductions you must ensure that sufficient flexibility is offered or you may be charged an early repayment fee. Fixed rate mortgage can be obtained without early repayment fees, however the initial interest rate and fees may be higher.

What if you decide to move home?

If you decide to move home you may wish to transfer your mortgage, this is known a "porting" your mortgage. If you may consider moving during the fixed rate period you should ensure that your mortgage could be transferred (ported).

Finding the best deal?

If you are considering a fixed rate mortgage for two years, please contact us directly in order that we can discuss your requirements and research the market to find you the best deal. Our service is available without a broker fee and without obligation.

Speak to an Advisor		Compare Mortgages		Learning Zone
Buy to Let Centre		Insurance Centre		Legal Service / HIPS