Choosing A Mortgage Its Not All Fixed

Choosing a​ Mortgage – It’s Not All Fixed
If you​ are a​ homeowner looking to​ limit the​ effects of​ rising mortgage rates you​ should make sure you​ consider discount-rates as​ well as​ fixed-rates .​
Whilst fixed-rate mortgages give people certainty of​ payment,​ they may not have the​ cheapest cost over the​ life of​ the​ mortgage .​
Particular care should be taken when there is​ a​ prospect that interest rates may start to​ come down- in​ these circumstances taking out a​ three or​ five year fixed rate mortgage may be throwing money away.
Recent research by found that as​ at​ 26 July 2018 the​ average true cost of​ the​ 10 best two-year discount deals is​ £1,​697.04 lower than the​ average true cost of​ the​ 10 best two-year fixed deals – around £70 a​ month .​
a​ borrower would pay an​ average £16,​526.16 over two years in​ a​ top 10 discount deal compared with £18,​223.20 in​ a​ fixed deal.
The true cost of​ the​ top 10 discount deals over two years ranges for a​ £150,​000 loan ranges from £12,​796.50 to​ £17,​694 compared to​ a​ range of​ £15,​095 to​ £18,​939 for two-year fixed deals.
Most recent Council of​ Mortgage Lenders figures show that in​ May this year 78 per cent of​ mortgages taken out were fixed rates as​ borrowers reacted to​ rate rises and the​ threat of​ more to​ come .​
The research could suggest that borrowers should be taking a​ long hard look at​ discount rates.
Discount rates presently offer good value and also enable borrowers to​ benefit if​ rates start to​ come down next year as​ some commentators are predicting.
One of​ the​ main drivers of​ the​ decision on​ which type of​ mortgage to​ choose should be a​ view on​ interest rates .​
Having formed a​ view on​ that,​ you​ should use a​ mortgage comparison site that looks at​ the​ whole of​ the​ market and allows you​ to​ compare mortgages on​ the​ true cost over the​ period of​ the​ mortgage deal.

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