Best Fixed Rate MortgageThe best fixed-rate mortgage with a fixed interest rate
Notwithstanding this, in return for this safety, the interest rate on a 10-year fixed-rate mortgage is going to be much higher than a bank rate or a short fixed-rate mortgage. The interest rate for a two-year fixed-rate mortgage in March 2018, for example, is around 1.4%; if you want a fixed interest rate for 10 years, the interest rate is nearer 2.5%.
At a mortgage of 400,000 pounds paid back over 25 years, the redemption payments per month are at 1.4% 1600 pounds; at 2.5% it is 1,800 pounds. Could you get a 10-year fixed-rate mortgage? A 10-year fixed-rate mortgage has no particularly knotty entitlement criterion. But the only thing to keep in minds is that the best interest rate will only be available if you make a large down payment (usually 30% or LTV 70%).
Since you are locked into the same interest rate for 10 years, you should try to get the lowest possible interest rate. Consider very seriously attempting to leave a 10-year fixed-rate mortgage. In contrast to short-term fixed-rate mortgages, where the fine for early redemption is quite low (2 to 3%), the early redemption fee for a 10-year fixed-rate mortgage is generally between 5 and 10%.
When you have a mortgage of 400,000, this would be a big part of the variation - 20,000 to 40,000 pounds. Except if you think that interest levels will increase drastically in the next few years, a shortened fixed-rate mortgage business might make more sense.