• Advertise
  • About us
  • Terms and Conditions
  • Contact us
Sunday, August 14, 2022
Australian Times News
  • News
    • Weather
    • Sport
    • Technology
    • Business & Finance
      • Currency Zone
    • Lotto Results
      • The Lott
  • Lifestyle
    • Entertainment
    • Horoscopes
    • Health & Wellness
    • Recipes
  • Travel
  • Expat Life
  • Move to Australia
No Result
View All Result
  • News
    • Weather
    • Sport
    • Technology
    • Business & Finance
      • Currency Zone
    • Lotto Results
      • The Lott
  • Lifestyle
    • Entertainment
    • Horoscopes
    • Health & Wellness
    • Recipes
  • Travel
  • Expat Life
  • Move to Australia
No Result
View All Result
Australian Times News
No Result
View All Result
Home Expat Life

Fixed rate loans are the most popular in the UK amongst home buyers

Why is there such a strong preference for fixed rate loans and longer term loans?

Australian Times by Australian Times
26-05-2014 15:43
in Expat Life

AlsoRead...

Best Immigration Lawyers in Birmingham

Best Immigration Lawyers in Birmingham

6 January 2022
Six top reasons to sell your UK house to a cash homebuyer

Six top reasons to sell your UK house to a cash homebuyer

15 November 2021

According to recent news, homebuyers in the UK are focused on getting the very best fixed rate loans rather than variable rate loans. Why is there such a strong preference for fixed rate loans and longer term loans? Continue reading to learn more.

A Look at Some Numbers

Mortgage businesses have found that over 70% of the mortgages that people take out when they purchase new houses for sale are fixed rate mortgages. Many buyers also prefer to start off with a 2-year fixed rate, with more than 50% of buyers opting for this shorter term mortgage, at least at the beginning. However, research has also shown that five-year fixed rates are also growing steadily more popular, with more than 25% of homebuyers opting for this option instead.

Why the Sudden Preference for Fixed Rate Mortgages Over All Others?

Clearly, individuals who are on the lookout for new houses for sale throughout the UK are being very cautious about their finances and are, therefore, opting for fixed rate mortgages. Borrowers are being very prudent about how much they’re willing to invest into a home, especially with demand for housing increasing as supply continues to dwindle. And they’re also growing more concerned about how much they can afford, especially over the long term. A fixed rate mortgage that will give buyers a great rate, at least over the next two or five years, can give borrowers the assurance they need. On the other hand, variable rate mortgages would put these individuals at risk of not being able to afford their mortgages once the interest rates are hiked up.

Mortgages May Continue to Become More Expensive

On top of a struggling housing market that’s unable to meet the demands of the many buyers who are seeking properties, recent news also suggests that mortgages will continue to become more expensive and even more difficult to get in the first place. This, on top of interest rates that are expected to rise, is encouraging more buyers to stick with a fixed rate mortgage, if they can get it, because they’ll be able to rest assured that, over the next few years, they won’t run into any unwanted surprises.

Mortgage applications now take longer than ever to process, and those who are applying for these loans are being asked more questions than before as well. Some of these questions, in fact, are considered quite intrusive. Therefore, if you’re applying for a mortgage, be prepared to discuss not only your finances but perhaps your hobbies as well. And be patient as your application is sorted and processed.

Getting Your Finances in Order

If you’re in the market for a new home, get your finances in order ahead of time. This will ensure you’ll have all of the information you need to properly file for a mortgage and get an approval sooner. It’s also highly recommended that you stick with a fixed rate mortgage that works for your budget, especially since interest rates will inevitably rise and a variable mortgage could put you at risk of being unable to pay your loan back.

Tags: Expat LifefinanceGreat Britainliving in the UKliving overseasMoneytaxtax and financeUnited Kingdom
DMCA.com Protection Status

SUBSCRIBE to our NEWSLETTER

[mc4wp_form id=”2384248″]

Don't Miss

Horoscopes: 14 August 2022 – Sunday

by Adamu
14 August 2022
Free Daily Horoscope - Astrology
Horoscopes

Keep your karma positive with these daily free horoscopes!

Read more

Weather Forecast 14 August 2022

by Adamu
14 August 2022
May's Weather Forecast
Australia Weather

Be prepared for any weather with our daily weather forecast for Australia.

Read more

Horoscopes: 13 August 2022 – Saturday

by Adamu
13 August 2022
Free Daily Horoscope - Astrology
Horoscopes

Keep your karma positive with these daily free horoscopes!

Read more

Weather Forecast 13 August 2022

by Adamu
13 August 2022
May's Weather Forecast
Australia Weather

Be prepared for any weather with our daily weather forecast for Australia.

Read more

Horoscopes: 12 August 2022 – Friday

by Adamu
12 August 2022
Free Daily Horoscope - Astrology
Horoscopes

Keep your karma positive with these daily free horoscopes!

Read more

Weather Forecast 12 August 2022

by Adamu
12 August 2022
May's Weather Forecast
Australia Weather

Be prepared for any weather with our daily weather forecast for Australia.

Read more

Horoscopes: 11 August 2022 – Thursday

by Adamu
11 August 2022
Free Daily Horoscope - Astrology
Horoscopes

Keep your karma positive with these daily free horoscopes!

Read more
Load More

Copyright © Blue Sky Publications Ltd. All Rights Reserved.
australiantimes.co.uk is a division of Blue Sky Publications Ltd. Reproduction without permission prohibited. DMCA.com Protection Status

  • About us
  • Write for Us
  • Advertise
  • Contact us
  • T&Cs, Privacy and GDPR
No Result
View All Result
  • News
    • Weather
    • Sport
    • Technology
    • Business & Finance
      • Currency Zone
    • Lotto Results
      • The Lott
  • Lifestyle
    • Entertainment
    • Horoscopes
    • Health & Wellness
    • Recipes
  • Travel
  • Expat Life
  • Move to Australia

Copyright © Blue Sky Publications Ltd. All Rights Reserved.
australiantimes.co.uk is a division of Blue Sky Publications Ltd. Reproduction without permission prohibited. DMCA.com Protection Status