Fee Free Mortgage Advice for Doctors
*We are not tied to a specific lender or panel and are allowed to source mortgages from across the whole market mortgage. Not all mortgage advisers are the same.
Today’s selected fixed rate mortgage best buy’s
Your home may be repossessed if you do not keep up repayments on your mortgage
Doctors guide to fixed rate mortgages
When considering a fixed rate mortgage its important to take a balanced view of the pros and cons.
With a fixed rate mortgage the monthly repayment amount is fixed for a specified period. The fixed rate remains constant irrespective of changes to the Bank of England’s base rate or the lender’s standard variable rate.
The fixed rate period typically lasts for two to five years, although it can be longer. At the end of the fixed rate period the interest rate reverts to the lender’s standard variable rate. An early redemption penalty will apply should you wish to cancel your mortgage before the end of the fixed period.
Furthermore, many fixed rate mortgages ‘tie you in’ for longer periods. This is because an early redemption penalty is charged if you cancel your mortgage within a set number of years following the end of the fixed rate period.
Advantages of fixed rate mortgages
It is easier to budget for your mortgage repayments as you will know exactly how much you will be paying over the fixed rate period.
You can usually benefit from a lower interest rate in the first few years, freeing up money for furnishings, carpets or whatever else you want.
You are protected from any increases in the Bank of England’s base rate.
Disadvantages of fixed rate mortgages
Early redemption penalties will almost certainly apply, which may also extend beyond the end of the fixed rate period. This means you will be unable to change your mortgage during the ‘early redemption penalty period’ without paying a fee, which may be up to the value of six months mortgage repayments.
- During the fixed rate period you may miss out on a more competitive interest rate if the lender’s standard variable rate drops to less than the fixed rate.
- You may be trapped in an uncompetitive rate once the interest rate reverts to the lender’s standard variable rate.
- You will normally have to pay an application fee when arranging your fixed rate mortgage.
Please note. This information is provided to give you an overview of the different types of mortgages available. It is not comprehensive and you should not base your mortgage decision on the information found here. We recommend you seek professional advice from us in order to determine the most suitable mortgage for you.