Buying a home is such a huge financial decision. That’s why you always want to make sure that you’re making the right one. We at Mortgage & Lifetime Solutions know how much this decision means. That’s also why we work hard to give you the most ideal mortgage deal out there. In Croydon, one of these is the fixed-rate mortgage.
What is a fixed-rate mortgage?
What sets a fixed-rate mortgage apart from other mortgage loans is that it has a set interest rate that does not change for an agreed upon time. This means you’ll be safe from interest rate hikes that typically also raise the costs of variable-rate mortgages.
The period of fixed-rate mortgages can be anywhere between one and fifteen years. However, these two options tend to be given only to people with specific borrowing requirements. Usually, people can get two- to five-year fixed loans.
Why is a fixed-rate mortgage ideal?
Aside from being safe from interest rate increases, a fixed-rate mortgage can also be easier to budget for. Compared to their variable-rate counterparts, this loan will always require a fixed amount to pay. This predictability makes it easier to include in your list of expenses.
The nature of this mortgage also makes it easier for you to compare your options since they have relatively fewer factors to consider. You can easily spot the better deal between different lenders.