Mortgage Loan

The most difficult decision that faces homebuyers is whether to choose a fixed or variable rate mortgage.

The mortgage market in the UK is currently extremely healthy and competitive in line with the housing boom, and interest rates are low. But interest rates also rise, and with a loan as big as a mortgage a rise of just 0.25% in the interest rates could mean a huge increase in your monthly repayments.

If you want to know where you stand with your mortgage, and don’t want to be at the mercy of fluctuating interest rates, you can choose the fixed rate mortgage option. With variable rate mortgages UK your payments may well vary from month to month, but you could save yourself thousands if the interest rates decrease.

UK mortgages rates are at a 30-year low at the moment so interest rates are starting to creep up, and because of this the fixed rate mortgage is growing increasingly popular with UK borrowers keen to avoid the potential extra costs associated with variable interest mortgages UK.