A big question that a lot of homebuyers will have is what kind of mortgage is going to offer them the best overall deal. In more simple terms, it really comes down to variable or fixed rates, where both do exactly what they say.
Fixed Rates Explained
With fixed rates, they are not going to fluctuate over a specified period of time, regardless of what may happen with the Bank of England base rate. Various deals will allow the rate to be fixed depending on different time periods, which will usually be between two to five years. In some cases, it can be as long at ten years.
What this means is that a borrower will have foresight as to what they will pay for the length of the fixed rate. The main benefit to a fixed rate is that budgeting can be easier and it offers freedom from the… Read the rest