When choosing a mortgage, one of the biggest decisions is whether to opt for a fixed-rate or tracker mortgages. Understanding the differences can help you make the right choice for your financial goals.
Fixed-Rate Mortgages
A fixed-rate mortgage locks in your interest rate for a specific period, typically 2–5 years. This can offer predictability and stability, usually making it easier to budget. However, fixed rates can be slightly higher than variable rates, and you won’t benefit from rate decreases during the fixed term period.
Tracker Mortgages
Tracker mortgages follow the Bank of England base rate with a rate for the mortgage added, meaning your payments can rise or fall depending on rate changes. While this offers flexibility, it also comes with the risk of higher payments if rates increase.
Which Is Right for You?
The choice depends on your financial circumstances and risk tolerance. Fixed-rate mortgages are ideal for those who value stability, while tracker mortgages may suit those comfortable with fluctuating payments.
Unsure which option is best? Speak to a broker at Helen Ferneyhough Associates for the right personalised advice.
Disclaimer:
There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £195 to £695 and this will be discussed and agreed with you at the earliest opportunity.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Bank of England Base Rate – You can check the current Bank of England base rate here.
Your Trusted Mortgage & Protection Advisors in Wigan, St Helens & Ormskirk
Book a no-obligation mortgage consultation with Helen Ferneyhough Associates today. Let our expert advisers guide you to your dream home with personalised support every step of the way! Speak with an advisor on 01942 311 555 or email info@hfassociates.uk
