Liberty Partnership

Stamford Financial Services: What Are The Disadvantages Of Having A Fixed Rate Mortgage?

Stamford financial services consist of many different elements. This means that you may only need to contact one independent financial advisor in order to secure assistance with all aspects of your finances including pensions, investments, business, and more. Mortgages can be a big step and the many options can be confusing.

The good news is that Lincolnshire financial advisors can offer advice on mortgages including which types might best suit your circumstances, and how to apply. Fixed rate mortgages are extremely popular, since they allow you to know exactly how much you will be paying per month. However, they do have some disadvantages as well, which your financial advisor Cambridge should go through with you so that you can make an informed decision. One problem with fixed rate mortgages is that they often have a higher interest rate than standard rate mortgages. This is because the lender needs to ensure they make money on your borrowing, so they need to offset against times when the interest rate rises but your mortgage rate does not. Equally, because the lender is taking more of a risk by lending on these terms, there may be a large set-up fee to pay before acquiring the mortgage. Finally, if your credit is not in great shape, getting a fixed rate mortgage may be difficult. If you do succeed, you may find that the interest rate will be very high. When you look at which kind of mortgage to take out, it is important to establish your risk appetite in terms of not knowing exactly how much your mortgage will cost each month. This can help you decide.

Liberty Partnership Ltd offer Stamford financial services including advice on mortgages. We are the best place to come to for answers and information, and our website has more details at https://liberty-partnership.co.uk. We are always happy to discuss your options with you, so please contact us on 01778 342291 or advice@liberty-partnership.co.uk.