Fixed-rate mortgages ‘Proving Popular’

Buying your first home can be quite a tricky endeavour unless you seek out first-time buyer advice in London or elsewhere… you could find yourself floundering a little if you don’t speak to someone in the industry like mortgage brokers who know the jargon and who can help you navigate your way through the pros and cons of the financial minefield of buying a house.

Do you know what type of mortgage you’d be interested in, for example? Standard Variable Rate (SVR)? Tracker? Fixed Term? The Moneyfacts UK Mortgage Trends Treasury Report has revealed that people are now overwhelmingly opting for fixed-rate mortgages, with almost all new advances approved for this particular kind of product.

Brief explanation of types of mortgages:

  • Fixed-rate mortgage means your monthly payments should stay the same until an agreed date, no matter what occurs with interest rates in the market. Fixed-rate periods come in various lengths, for example, 2, 3 and 5 years.
  • Tracker mortgages follow the Bank of England’s Base Rate and rise or fall along with it. The interest rate charged is the Bank of England’s Base Rate plus an agreed margin. There are ‘lifetime’ trackers for the life of the mortgage, and term trackers which can be for 2 or 3 years.
  • Standard variable rate (SVR) mortgages; the SVR is the rate of interest that’s usually charged once a fixed rate or term tracker period ends. You can usually move to another tracker or fixed product instead of moving onto a SVR, if you wish.

Generally, there are only around 250-300 tracker rate mortgages on the market, which work in line with the Bank of England base rate, making up less than five percent of residential mortgages, which may also be worth bearing in mind.

The choice between opting for a tracker mortgage or a fixed rate mortgage is down to the risk appetite of the potential borrower, but with nearly all advances being fixed, it seems that nearly all choose to be risk averse during the continuing period of economic uncertainty and favour fixed rate deals.

Knowing the difference between all the products is your first step toward ensuring you choose the right mortgage. Fixed-rate mortgages mean your monthly repayments are the same for the duration of the mortgage deal, but you won’t benefit if the interest base rate falls as with a variable rate mortgage.

Speaking to an independent mortgage broker in London like us here at Greenacre Financial Services will allow you to find out what options are open to you and what will best suit your personal circumstances. Buying a first home is an exciting time, and we aim to keep it that way, taking away as much stress and hassle as possible.

Unlike many of our corporate competitors we are a completely independent Whole of Market Mortgage Broker offering a choice of around 100 mortgage lenders, all authorised and regulated by the Financial Conduct Authority, and up to 25,000 different mortgage schemes, meaning we will be able to find you the best mortgage deals and save you money.

For more information about SVR, fixed-rate mortgage or tracker, or any of our services including remortgages, please don’t hesitate to get in touch by calling us on 0203 3939 222. We are happy to arrange out-of-hours appointments (these can be in-person or via FaceTime/WhatsApp) so to find out how we can help, get in touch today.

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Hannah D
Hannah D
07:42 09 Sep 19
I would fully recommend Greg and Greenacre Financial Services. As a first time buyer I was daunted by the process of... finding the right mortgage for me however Greg made the process really simple, clear and quick. He was always available to answer any questions and happy to explain everything. I wouldn’t hesitate in recommending Greenacre FS to my friends and more
Jessica Cohen
Jessica Cohen
19:33 26 Aug 19
We first met with Greg in May for advice as we had adverse credit and irregular pay and didn't think a mortgage was in... our reach. Less than two weeks later Greg had fully arranged a great deal for us on our first mortgage. He was available whenever we needed him, 7 days a week and in the evenings. We cannot thank Greg enough for helping us buy our first home!read more
Seren Fletcher
Seren Fletcher
08:56 24 Aug 19
Would highly recommend Greg and Greenacre Financial Services. Was extremely professional and helpful. Our mortgage... wasn’t straight forward due to my husband being self employed but Greg was very knowledgable and managed to find us a really good mortgage. Looking forward to working with him again in the futureread more
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Graham at Greenacre was excellent in helping me get a mortgage for my house purchase. He was always available when... needed, provided an efficient service and was very knowledgeable. Highly recommended!read more
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Ian Hatter
11:07 16 Aug 19
What can I say, Greg has been absolutely amazing in sorting out a mortgage for me I never thought was possible. It has... meant I have been able to buy a house, a few months ago, I would never have dreamed of being able to buy after talking to high street lenders. He worked exceptionally hard and always kept me updated with every step of the process. Buying a house is extremely stressful, but Greg took all that stress away from me. I cannot recommend Greg enough to anyone looking to buy a property. Thank you so much for your help Greg, it's greatly more
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15:27 30 Jul 19
10/10 EXCEPTIONAL service and result. Highly recommend. Greg and the Greenacre Financial Services team were fast,... knowledgeable, and honest. All the qualities you want and need. Very pleased I was recommended to Greenacre. Customer for life!read more
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