First, an overview of the market:
In the mortgage world and property market the last couple of years have been quite a ride. We have seen the Bank of England Base Rate increasing to 5.25% for the first time since February 2008. This has of course caused an increase to the available mortgage rates. This led multiple households to have an increase in their mortgage payments. It also made first time buyers more concerned about their purchase journey. It’s no surprise that the most asked question by any client is ‘how long should I fix my mortgage for?’.
There have been many up and downs in the mortgage rates which caused confusion amongst all mortgagors. This includes first time buyers, home movers, and people who need a re-mortgage. Everyone is wondering whether to lock in their monthly payments for the long term whilst things settle down, or do it for the short term in case the rates started to fall much sooner. There is no guarantee on whether rates will fall, and if they do so, there is no way of predicting when this would happen.
We have the solution that can help you settle your worries
Virgin Money have come up with the perfect solution to this uncertainty which could settle many buyer’s and re-mortgager’s minds.
THE FIX AND SWITCH PRODUCT!
This product comes with the security of a five years fixed rate and the flexibility of a two years fixed. Your monthly payments will be secured for the next five years but the early repayment charges applied to the product will only be for two years. What does this mean to you? Essentially, after the first two years you are free to decide to sell or even just review your mortgage rate without any penalties.
This means that, should rates drop significantly after a two years period, you can freely change your mortgage and secure cheaper rate. At the same time, should rates remain the same or increase, you don’t have to worry as this product will allow you to make sure your payments are secured for a total period of five years. Any changes in the market won’t affect you until this product reaches it’s expiry date.
Furthermore, you will benefit from a five years fixed rate affordability calculation that often allows you to borrow more than if you were to fix for a shorter period of time.
We can now answer the most frequently asked question ‘How long should I fix my mortgage for?’. With a product that doesn’t make you regret your choice if things don’t go as planned. The fix and switch product might be the best solution for you.
This product is available with one lender only, and it is subject to passing affordability checks and criteria. Book in an appointment to find out if you can qualify for this.