Should I choose a fixed rate mortgage ? Let us walk you through it

Should I choose a fixed rate mortgage is something you might be pondering over right now.

It is also a question we’re being asked a lot at the moment at Mortgage Medics.

Here are some key points to consider:

💷 Predictable Payments: Shield against interest rate fluctuations
📆 Budgeting Bliss: Stable monthly payments for peace of mind
🔒Long-Term Planning: Lock in rates for financial security
⚠️ Less Flexibility: Limited to set terms and conditions
📉 If interest rates come down you will still pay your fixed payment for the fixed term

Finally, fixed term mortgage products can range from 1 all the way up to 10 years.

Should I choose a fixed rate mortgage ?

MD of Mortgage Medics Sam Murphy said: “For the last 14 months the best advice for most borrowers looking to line up a new deal has been to secure a fixed rate 6 months before their current deal ends and then keep rates under review in case anything better comes up.

“However, the Bank of England has now held the Base Rate on 2 successive occasions and with better inflation data in November, many are starting to believe rates have peaked. We’ve seen the cost of new fixed rate products reduce by around 1% since their peak in July this year and this means that many who lined up a new deal months ago can now get a better deal.

“Some borrowers are also dumping the fixed rate they had lined up in favour of a tracker, in the hope they’ll benefit from future rate decreases. Whether this will pay off is impossible to say right now, and there aren’t many forecasts predicting any reduction in the Base Rate before Summer/Autumn 2024. But the general consensus amongst economists is that the Base Rate will reduce late 2024 into 2025 which would bring welcome relief for anyone on a Tracker mortgage.”

Best fit

Ultimately it’s your decision – we’ll help you navigate your options and assess your circumstances surrounding your property plans and financial circumstances.

Let’s chat to find YOUR best fit.

Think carefully before securing debt against your home. Your property may be repossessed if you do not keep up repayments on your mortgage.

If you’re looking for advice Get in touch and we’ll talk you through your options, or sign up to our monthly newsletter.

Related: Five reasons why you should have life insurance – Many homeowners don’t