MORTGAGE interest rates are usually set by a mortgage lender and may be influenced by the Bank of England’s base rate.
Interest is the money you pay to your lender in return for borrowing money from them for a mortgage. You will pay a percentage of the amount you borrowed and this is called the interest rate. Typically, you will want a low mortgage interest rate meaning you’ll pay less to the lender in borrowing costs.
Taking out a mortgage just might be one of the biggest financial commitments you ever make. Our mortgage department will ensure this is a seamless process for you. It’s not a time to be making mistakes.
Mortgage Interest Rates
There are three different interest rate options when it comes to choosing a mortgage. They are; fixed, variable and tracker.
Let’s go into this in a little bit more detail.
If you opt for a fixed rate mortgage, this option comes with a set interest rate which remains the same for an agreed period of time. This means that no matter what happens to the Bank of England’s base rate, what you pay on your mortgage repayments will remain the same during your agreed fixed period. The matters to you because you know what your mortgage outgoing is during your fixed period.
If you opt for a variable rate mortgage – it does what it says on the tin. As interest rates go up or go down, your mortgage payments will either go up or down depending on the rate.
If you opt for a tracker rate, like the variable rate, your repayments can go up or down because the tracker mortgage interest rate can change. The interest rate with a tracker mortgage is set at a fixed amount below or above another rate which it usually tracks – normally that is the Bank of England’s base rate.
Our mortgage brokers will go through all of this with you in more detail to help you work out which is best for your situation. The interest rate which you pay will depend on the amount of money you are wishing to borrow and also what size of a deposit you have saved up. Regardless of which you opt for the one crucial thing to always remember is that you need to be able to afford your repayments. If you do not – you risk losing your home.
Make smart decisions when it comes to your mortgage – our team of specialists will guide you on your exciting homeowner journey. Email info@wwfp.net and one of our advisers from our mortgage department will get in touch with you.