With inflation on the rise it's widely predicted that the Bank of England will raise interest rates soon. If you're already on a tight budget this could mean you're stretched to breaking point if you have a variable mortgage, as your monthly repayments will go up too.
With a fixed rate mortgage however, this won't happen:
The popularity of fixed rate mortgages has increased significantly over the last couple of years and many lenders have started to withdraw some of their best fixed rate mortgage deals because of the expected rise in interest rates. This could prove a nasty shock if you have a fixed rate deal that's due to finish soon!
If you're thinking of buying a house within the next six months you can still take advantage of today's fixed rate mortgage deals, as most lenders will keep the fixed rate deal open for you. So the message is act now if you want to fix your mortgage before the best deals disappear!
Mortgage lenders are desperate for your business and there are thousands of deals to choose from. Moneyfacts.co.uk can help you search and compare nearly 2,000 fixed rate mortgages, in a fast and friendly way with our best buys and searches.
Don't forget to also look out for other incentives like free legal fees, a free valuation, cashback and overpayments or payment holidays. But, please remember to look at all of the costs as well as the interest rate as some of the best rates you find will often come with very high fees, so take the time weigh up the whole package before you decide on a lender.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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