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If you want the ability to plan your monthly finances and need the financial security that you can budget and plan every month then a Fixed Rate Mortgage could be just what you need. Worrying about your monthly finances can be very stressful; however, this type of remortgage helps you to be able to stay in control of your finances. This particular remortgage product provides the security throughout the term of the Fixed Rate Remortgage that the rate offered will never change and monthly payments will remain the same through the duration of the fixed period.
Fixed Rate Remortgages can be purchased to run from a 2 year period up to a 10 year period depending on lender. All financial institutions set their mortgage rates around the Bank of England base rate. Any changes to the Bank of England base rate will not affect the agreed Fixed Rate Remortgage as it will not be subject to any change during the course of the agreed Fixed Rate period.
If you are proposing to apply for a fixed rate remortgage, you should consider approaching your current lender for advice. They will be happy to provide advice on their current Fixed Rate Remortgage deals and talk you through the application process. Alternatively, other high street lenders can also offer Fixed Rate Remortgage advice.
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1. Best Fixed Rate Remortgage Sites
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2. Best Fixed Mortgage Rate Sites
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3. Mortgage
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As with any type of remortgage, the amount of information can seem very confusing. With so much information to digest, it’s worth considering making an appointment with a lenders financial advisor to discuss all the options available and all the relevant documents required for application. If further clarification is still required, an Independent Financial Advisor can be contacted as well as a remortgage broker to seek advice on all Fixed Rate Remortgages available. It’s worth researching thoroughly in order to gain the best deal on offer as you could be losing out on a better deal if you stay with the same lender at all times.
Lenders will show Fixed Rate Remortgage interest rates as an Annual Percentage Rate” (APR). When opting to borrow the remortgage on the minimum Fixed Rate period, for example over two years, the rates offered by lenders can be slightly lower compared to when taking out a longer term Fixed Rate. Lender rates can also depend on how much of a deposit the borrower has to put down, most lenders require a minimum of a 5% deposit of the whole loan. If the borrower has a greater deposit to offer the lender, the lender could offer a slightly reduced Fixed Rate. When the agreed fixed rate period has expired, borrowers revert back to the lenders variable rate but will have the option to apply for another fixed rate remortgage product.
Applications for these types of remortgages are accepted online and most lenders are happy to process applications using this method. In order for the application to proceed, they will have to assess the data given through a credit scoring system. This is where the lender can check the potential risk associated with lending you the money for the remortgage. The credit check will be look at factors such as employment history, monthly expenditure and current debt. All lenders perform these credit checks using their own system, however, if you know that you have a poor credit history you should advise the lender at the time of application.
Fixed Rate Remortgages are a stable remortgage product; however they could prove to be costly if you repay the remortgage earlier than the agreed set period. Lenders can impose early redemption penalties which will be payable if you repay the remortgage earlier or switch to another lender during the agreed fixed rate period. These charges can be a minimum of two months interest if repayment of the outstanding remortgage is made earlier than the agreed term. Lender can also charge an arrangement fee for the Fixed Rate Remortgage which locks you in to the agreed fixed rate.
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