Echo Finance

FIXED RATE MORTGAGES

The interest rate you pay will stay the same throughout the length of the deal no matter what happens to interest rates.

You’ll see them advertised as ‘two-year fix’ or ‘five-year fix’, for example, along with the interest rate charged for that period.

Advantages

  • Peace of mind that your monthly payments will stay the same, helping you to budget

Disadvantages

  • Fixed rate deals are usually slightly higher than variable rate mortgages
  • If interest rates fall, you won’t benefit

Watch out for

  • Charges if you want to leave the deal early – you are tied in for the length of the fix.
  • The end of the fixed period – you should look for a new mortgage deal two to three months before it ends or you’ll be moved automatically onto your lender’s standard variable rate which is usually higher.

Their interest rates will not change for a set period of one, two, three, five or ten years.

This means that the amount you pay each month will stay the same until the deal ends. Even if the lender's SVR or the Bank of England base rate goes up, you will pay the same amount until the end of the fixed term.

When your fixed rate finishes you will be charged the lender's SVR instead, unless you move to a new mortgage deal at that point.

For example: You take out a mortgage fixed at 4% for five years and the Bank of England base rate goes up after a year. You will carry on paying the same amount for another four years.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
Echo Finance

Registered in England and Wales No. 6939070. Registered office - The 1812 Building, Wheatley Park, Mirfield, West Yorkshire, WF14 8HE. Echo Finance Limited is authorised and regulated by the Financial Conduct Authority. Echo Finance Limited is entered on the FCA register (www.fca.org.uk) under reference 570073. The Guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. The Financial Conduct Authority does not regulate Will Writing, Estate Planning and some forms of Mortgages. © Copyright Echo Finance Limited. Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: www.financial-ombudsman.org.uk.

Echo Finance Limited

The 1812 Building, Wheatley Park, Mirfield, West Yorkshire, WF14 8HE

Local Rate: 01484213337
Freephone: 08000934914
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