If interest rates go down, your mortgage payments will not follow suit and therefore you could pay more than the prevailing rate
(PRWEB UK) 8 August 2012
Cost.co.uk is an online comparison website specialising in all insurance, monetary, travel and utility-based products. As well as sourcing its online users, Cost also regularly produces a collection of information and advice. The latest of which discusses fixed rate mortgages and the important information first time buyers must know before they settle on their mortgage choice.
Cost’s Chief of Finance shares her thoughts on the matter:
“If you’re a first time buyer, choosing the right house can be painstaking enough, so when it comes to picking the right mortgage, you want to be able to do so knowing all the facts and necessary information. Here are a few things that first time buyers should be aware of when considering a fixed rate mortgage”.
- If interest rates go down, your mortgage payments will not follow suit and therefore you could pay more than the prevailing rate.
- Should you be in a position to repay your mortgage early or you wish to remortgage during the fixed rate period, you will have to pay an Early Repayment Charge.
- When the fixed rate period on your mortgage ends, you will enter the variable rate period. Your repayments are then based on interest rates meaning that you could end up paying a lot more each month than what you were paying during the fixed rate term.
- Once you have taken out a mortgage and you are considering remortgaging; you should start researching several months before your fixed rate period comes to an end. Then you can wait until the fixed rate term ends and complete your remortgage to a new fixed rate- without having to pay an Early Repayment Charge.
The Cost team are also dedicated to keeping their consumers up to date with the latest news and developments in their industry.
Based in Essex, Cost is one of the UK’s leading price comparison sites. Allowing their online customers access to companies offering a range of insurance, financial and travel services, the firm specialise in providing a personal experience. Founded in 2012, the agency has a trusted reputation for sourcing the most ideal policies at affordable prices.