As a kid you tend to focus on the simple pleasures that life has to offer. You enjoy being outside, playing with toys and hanging out with your friends. As you move closer to adulthood, however, you have to start to focus on slightly more complex things. One of the things that you have to focus on is mortgages. Mortgages are complicated things that the vast majority of people have to worry about. One particular type of mortgage is a fixed mortgage. As of late, fixed mortgage rates have fallen and continue to do so. Let us, therefore, explore what this means and the effects that this could have on the wider world.
Before we start, however, I’d like to offer up a simple definition for a fixed mortgage. A fixed mortgage is a mortgage which guarantees that your mortgage rate will stay the same until the mortgage period ends. This period can be any amount of time, but typically is between 2-10 years. According to the Chelsea Building Society, fixed mortgage rates have reached record lows of 1.84%. One contributing factor is the low interest rate set by the bank of England.
Another contributing factor is the vast amount of competition which has led to some mortgage firms lowering their prices. As such, people have decided to purchase fixed mortgages whilst they can. These purchases are also partially made due to anxiety because of the possibility of higher mortgage rates in the future.
In conclusion, I hope to have briefly explained what fixed mortgage rates are, why they are falling and the effects that this could have. In order to save money on your mortgages, you should use comparison sites; however, ensure to be careful when doing so.