2 Year Fixed Rate Mortgage Deals
Advantages of 2 year fixed rate mortgages include easy budgeting - Your payments won't change over the two year period and the potential to save money - If rates go up, your agreed rate is unaffected which could save you hundreds of pounds. With a 2 year fixed rate mortgages you need to be mindful that if variable interest rates go down you will not benefit, and when the deal comes to an end, it can be expensive to set up another, plus, if you don't, you automatically go onto your lenders' variable rate, which could add a considerable amount to your monthly repayment. But if you are happy with the rate you are offered, and are keen to have a deal where you know where you are each month, a 2 year fixed rate mortgage could be right for you.
A 2 year fixed rate mortgage is one of the options you have, but this kind of mortgage deal is not suited to everyone. Doing your homework and researching the areas of mortgages that you are not familiar with will help you to get to grips with the right mortgage deal for you. This is an especially competitive area of the mortgage market so taking your time to choose the right deal is especially important.
Fixed rate mortgages and tracker mortgages are typically popular choices among residents of the UK. Fixed rate mortgages refer to an agreed monthly payment that remains the same through the duration of you mortgage policy. Many people typically take out a fixed rate mortgage for 2 years although you can arrange a much longer contract if necessary.
Alternatively, tracker mortgages are mortgages where the interest rate follows the bank of England base rate. Your repayments will be determined by the status of the base rate, so they could be low or high depending on the current economic situation. 2 year fixed rate mortgages are popular among people for a number of reasons, such as:
- You can be comfortable in the knowledge that repayment will be the same each month
- You may pay less than you would with a tracker mortgage if the interest rates are high
- Good for budgeting purposes
- Beneficial to those who perhaps have a low income
- If you are not happy with a fixed rate mortgage you can change after just 2 years
If a 2 year fixed mortgage policy sounds like the best choice to you, there are many competitive mortgage offers available. Comparing mortgage deals can enhance the likelihood that you will find a policy most suited to your needs. Use the comparison table above to begin your search for the best 2 year fixed rate mortgage deal for you.
Require mortgage advice? You can call our mortgage team on:
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