Although it is highly important to take current mortgage rates into consideration when searching for an appropriate mortgage, it is also important to consider a number of other factors. A good mortgage offer may contain a number of useful benefits, such as:
- Flexible under or overpayment options
- Some may have no early redemption charges
- Cheaper arrangement fees
Depending on the type of interest rate deal that is selected, current mortgage rates may be influenced by a variety of different factors. Here are some examples of the different deals and how current mortgage rates may be adjusted.
Using a fixed rate mortgage, the lender may look at current mortgage rates and agree to offer the customer a fixed interest rate for their mortgage that may be slightly higher compared to many other types of deal. However, it is important to remember that this rate will remain the same for the duration of the agreement, allowing the customer to plan their budget and repayments accordingly.
With a tracker mortgage, the lender will typically set a starting interest rate depending on current mortgage rates, but this will then be adjusted according the Bank of England’s base interest rates, and will rise and fall accordingly.
Customers who select a discounted variable rate mortgage can expect to pay lower initial rates compared with many other current mortgages. However it is important to remember that these rates will be subject to change as time goes on according to the policy of the lender.