Should I Get a Fixed Rate Mortgage or Variable?

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Should I Get a Fixed Rate Mortgage or Variable

Mortgages in 2023

Interests rates are higher than they have been for some time so it’s more of a consideration. Do you go for a fixed rate mortgage or a variable rate?

It’s probable that rates are going to level out soon. They may rise a little more before they do that however. The problem with variable rates is they are exactly that. You are at the mercy of the Bank of England base rate. When you choose a fixed rate, at least you know where you are for the foreseeable.

It’s much easier to make the choice when interest rates are favourable but making the decision to lock yourself into a deal when they are not can be a little challenging.

Maybe you are out of your current contract and you really don’t know which way to turn. Don’t panic. When you are out of contract, time is on your side. You can take plenty of it to consider what might be right for you at this moment. It might well be that leaving things alone for a while at a variable rate is okay for now whilst you consider your options.

Recent Interest Rate Information:

At the time of writing, the Bank of England’s current base rate sits at 4.25%.

Fixed Rate Deals
There are various options open to you. You do not have to lock yourself in for five years for example. If you think that the base rate might drop over the next couple of years and depending on your circumstances, you may opt for a 2 year fixed rate deal.

A two year deal will generally offer a lower interest rate but a five year deal offers more stability. You will know where you are for the next five years and that gives you peace of mind further into the future.

A broker won’t tell you what to do but will be able to give you all of the information you need and the right mortgage advice so that you can make the decision that’s right for you.

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