Fixed Rate Remortgage

There is a huge amount of competition within the mortgage industry, in many of the different sectors – the market for fixed rate mortgages is no different. There is fierce competition between many different lenders to offer the most attractive fixed rate remortgage products in an attempt to entice borrowers to move away from their existing lender – this can all be seen as great news for the consumer. In recent years however, there has been a large increase across the board in respect of the lender’s mortgage arrangement fee.

The basis of a fixed rate remortgage is that the interest rate is fixed for a predetermined length of time, normally between one to five years. During that time the interest rate will not fluctuate despite any movements made by the bank base rate.

When contemplating whether to choose a fixed rate mortgage, the borrower must be aware of the possibility that interest rates will rise during the fixed rate period, resulting in an increase in the monthly repayments once the period ends.

There are usually large penalties to face if you decide to move mortgages within the fixed rate period. This penalty is known as the ‘early repayment charge’ (ERC) and it will usually be worked out as a percentage of the outstanding mortgage balance. These amounts will vary from lender to lender.

When considering taking out a fixed rate remortgage, it is important that you are confident that you will not have to switch lenders during the fixed rate period. Some fixed rate remortgage products will be portable in the event of you moving home, however, many products will not offer this facility.

For many borrowers, a fixed rate remortgage can be hugely beneficial for budgeting purposes. In this way, the borrower will know exactly where they stand with their month by month repayments during the fixed interest period and as such can plan their finances accordingly. Conversely, a borrower will not be set to benefit from any interest rate reductions during the fixed period.

There are many fixed rate remortgage deals on the market and it can be extremely difficult knowing which one is right for you. Some will be portable in the event of moving house, some will have overhang penalties which will take affect for a period of time after the fixed period ends, and some will have an overpayment facility without penalty. The differences between products do not stop there; often the lender will charge an arrangement fee and again these will differ from lender to lender.

At Any Loans, they can take the hassle out of shopping around for the best fixed rate remortgages. They will ensure that all products are transparent in their associated fees and costs and transparent in their terms and conditions. Fixed rate remortgages can be obtained for all types of borrower from the credit worthy to the credit impaired.

With Any-Loans it is very easy to find a good fixed rate remortgage, simply start by completing the online remortgage form by clicking here.