Remortgaging – Fixed Rate or Variable Rate?
When remortgaging, considering the type of mortgage deal you get is just as important as assessing your current financial situation. Fixed rate mortgages and variable rate mortgages are the two most common types of mortgages.
Fixed Rate Remortgages – A fixed rate remortgage has a fixed interest rate throughout the life of the mortgage hence fixed monthly repayments are also fixed. These types of remortgages give you peace of mind as you know how much you will be paying on a monthly basis. If you are on a tight budget and don’t want any uncertainties then a fixed rate remortgage is probably your best option.
Variable Rate Remortgages – These remortgages are tied to the to the Bank of England’s base rate. Therefore if the base rate falls, your monthly repayments will drop whereas if the base rate rises, then you will pay more on your monthly repayments. If the Bank of England’s base rate goes down then it is favourable to take out a variable rate remortgage deal. The drawback of these types of remortgages is the unpredictability however; if you are have some space in your monthly budget then they may be worth taking out.
By speaking to our mortgage advisors you can be sure we can provide you with the best advice possible in choosing your remortgage deal.
