How can I pick the right five year fixed mortgage rate for me?
Once you’ve weighed up the pros and cons and have decided a five year fixed rate mortgage is probably right for you, there’s plenty to think about. While you’re choosing a lender, there are two immediate things you need to consider are:
The rate itself: mortgage rates are determined by a variety of factors; your credit history, your location, and the size of your down payment. The higher your deposit, the lower your offered interest rates are likely to be.
Obviously you’ll want to find the lowest rate available to you, but be wary as some of the lowest fixed rate mortgages may have high arrangement fees.
Fees & charges: read the small print and make sure you know exactly what you’ll be charged upfront, and what you’ll be charged if you cancel. Even if the second scenario sounds unlikely, it’s always good to consider these things just in case.
When choosing a mortgage, it is very important to work out the total cost – rate plus fees – to ensure that you are comparing like for like.