{"id":1555,"date":"2022-11-03T15:08:05","date_gmt":"2022-11-03T15:08:05","guid":{"rendered":"https:\/\/fomomortgages.com\/?p=1555"},"modified":"2022-11-03T15:37:41","modified_gmt":"2022-11-03T15:37:41","slug":"what-type-of-mortgage-will-work-best-for-you","status":"publish","type":"post","link":"https:\/\/fomomortgages.com\/what-type-of-mortgage-will-work-best-for-you\/","title":{"rendered":"What Type of Mortgage Will Work Best for You?"},"content":{"rendered":"\n

In an unstable housing market, homebuyers are faced with the tricky choice between fixed and variable mortgages.<\/em><\/p>\n\n\n\n

Today\u2019s mortgage rates could be gone tomorrow!<\/p>\n\n\n\n

Some experts say that 5 million UK families will see their mortgages spike by more than \u00a35,000 by the end of 2024.<\/a> Others have a rosier vision of the future, claiming that rates could fall rapidly in 2023.<\/a> (Let\u2019s hope they\u2019re right!)<\/p>\n\n\n\n

In such a slippery housing market, it\u2019s difficult to decide what kind of mortgage would work best for you. <\/p>\n\n\n\n

That\u2019s where our mortgage advisors come to the rescue! <\/p>\n\n\n\n

Fill out one of our short forms, so that we can help you get the best possible deal on your mortgage \u2013 click here<\/a>, it only takes a minute! <\/em><\/p>\n\n\n\n

Fixed versus variable: what’s the difference? <\/h2>\n\n\n\n

There are two types of mortgage.<\/p>\n\n\n\n

With a fixed rate mortgage<\/strong>, the interest rate is locked down for a set amount of time<\/strong>, usually around 2 to 5 years. This means that you don\u2019t have to worry about your monthly payment changing during those years!<\/strong><\/p>\n\n\n\n

However, when that time runs out, you\u2019re automatically switched to the variable rate.<\/p>\n\n\n\n

If you want to learn more about fixed-term mortgages click here!<\/a><\/em><\/p>\n\n\n\n

With a variable mortgage<\/strong>, the interest rate can change at any time within the term of the mortgage.<\/strong><\/p>\n\n\n\n

This means that if interest rates go up, your monthly payments go up; if they go down, your payments go down. A variable mortgage can be a bit of a bumpy ride!<\/p>\n\n\n\n

But what does this mean for me?<\/h2>\n\n\n\n

Variable and fixed-rate mortgages each have their pros and cons.<\/p>\n\n\n\n

Should I get a fixed rate mortgage?<\/mark><\/h3>\n\n\n\n

With a fixed-rate mortgage, you can rest assured that your payments will be the same every month, no matter what happens to interest rates! <\/p>\n\n\n\n

This makes fixed-rate mortgages a good option in a volatile economy<\/strong> \u2013 <\/strong>they provide some stability in unstable times.<\/p>\n\n\n\n

However, if interest rates suddenly drop, you might find yourself holding the bag<\/strong> and paying a far higher monthly bill than you would if you had gone for a variable mortgage.<\/p>\n\n\n\n

Should I get a variable mortgage?<\/mark><\/h3>\n\n\n\n

Variable mortgages are risky: they have all the advantages and disadvantages of flexibility.<\/strong> If interest rates stay low, your monthly payments stay low. It\u2019s as simple as that!<\/p>\n\n\n\n

And, because you\u2019re taking a risk on interest rates increasing in the future, your lender may give you a favourable rate when you first start out!<\/p>\n\n\n\n

However, the danger of a variable mortgage lurks in increasing interest rates<\/strong>. A dramatic rise in rates will mean that your monthly payments may become hard to handle!<\/strong><\/p>\n\n\n\n

So what should I do?<\/h2>\n\n\n\n

Honestly, there is no clear-cut answer as to whether a variable or fixed-rate mortgage is better for you. A mortgage is a long term commitment. You will want to put your best foot forward!<\/p>\n\n\n\n

The FOMO team has 80 years of combined experience in dealing with mortgages. With 7,000 UK clients and 5 star reviews across the board, you won\u2019t find better help when it comes to making this tricky decision!<\/p>\n\n\n\n

Get in touch with our experts<\/a> so that we can help you tackle the modern housing market. <\/p>\n","protected":false},"excerpt":{"rendered":"

Discover whether remortgaging could be right for you, plus a clever extra option.<\/p>\n","protected":false},"author":6,"featured_media":1574,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[4],"tags":[8,15,14,9,11,16,13,12,10],"class_list":["post-1555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-resources","tag-charities","tag-counselling","tag-environmental","tag-ethical","tag-finances","tag-mentalhealth","tag-mortgagebroker","tag-mortgagerates","tag-savetheplanet"],"_links":{"self":[{"href":"https:\/\/fomomortgages.com\/wp-json\/wp\/v2\/posts\/1555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fomomortgages.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fomomortgages.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fomomortgages.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/fomomortgages.com\/wp-json\/wp\/v2\/comments?post=1555"}],"version-history":[{"count":5,"href":"https:\/\/fomomortgages.com\/wp-json\/wp\/v2\/posts\/1555\/revisions"}],"predecessor-version":[{"id":1567,"href":"https:\/\/fomomortgages.com\/wp-json\/wp\/v2\/posts\/1555\/revisions\/1567"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fomomortgages.com\/wp-json\/wp\/v2\/media\/1574"}],"wp:attachment":[{"href":"https:\/\/fomomortgages.com\/wp-json\/wp\/v2\/media?parent=1555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fomomortgages.com\/wp-json\/wp\/v2\/categories?post=1555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fomomortgages.com\/wp-json\/wp\/v2\/tags?post=1555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}