5 Year Fixed Rate Mortgage Deals
5 year fixed rate mortgages are becoming more common as lenders realise that borrowers are prepared to commit themselves to longer term mortgage deals in return for more security. Benefits of 5 year fixed rate mortgages include; Budgeting – You know exactly how much your monthly payments will be throughout the entire term. Savings – If the base rate goes up, your mortgage repayments will not be affected, which could mean big savings. Security – You are secure in the 5 year fixed rate mortgage, so you won't have to re-mortgage and your payments won't go up. Make sure you know what your outgoings will be each month with a 5 year fixed rate mortgage.
Deciding which different mortgage policies is the best one for you can sometimes seem like you are caught between a rock and a hard place. Out of the many options you could potentially go for, a 5 year fixed term mortgage may be the one that is best suited to your needs. It helps to do research about some of the different types of mortgage deal and what each one offers. Two of the most popular types of mortgage are fixed rate and tracker rate mortgages.
Fixed rate mortgages are identical monthly repayments that you make over the duration of your mortgage policy. You will be required to pay the same amount each month in spite of the changes to the interest rate. Many people choose this as an option because it is a secure and comfortable way to make repayments. You may also end up paying less if the interest rates are high. Although you can take out a wide range of fixed rate mortgages, a 5 year long term plan may be a good idea for a number of reasons. Some of these include:
- Security in the knowledge that if interest rates go up you are safe during those 5 years
- Comfort in making the same repayment for a long period of time
- Many deals available to those taking out 5 year fixed rate mortgages
There are a variety of potentially great mortgage deals waiting for you in our easy to use product comparison tables.
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