Fixed Rate Mortgage For Buyers With Poor Credit
A fixed rate mortgage for buyers with poor credit or good credit either way it is the best option for many people precisely by the nature of a fixed rate mortgage
So what is a fixed rate mortgage. Simply put it makes it easy to plan ahead, as the name gives it away, the interest rate on your mortgage stays fixed, so it does exactly what it says on the tin!
What this means for a mortgage buyer with poor credit or good credit for that matter, is that as a fixed rate mortgage customer, even if the Bank of England Base Rate or the lenders standard variable rate (SVR) changes, the interest rate on your particular mortgage will remains exactly the same.
It will stay exactly the same over a fixed period of time, whether it be over one, two, three or four years or even longer.
This makes budgeting much easier for you, as you can literally plan for the future knowing exactly how much the monthly repayment is going to be. Please note the likely difference between a fixed rate mortgage for buyers with poor credit as opposed to good credit is that the person with poor credit will probable have a fixed rate, which is higher than the fixed rate offered to the person with good credit.
What are the benefits of a fixed rate mortgage for buyers with poor credit?
A fixed rate mortgages can be good for first time mortgage buyers together with people with poor credit and anyone else on a budget who needs the stability of a set monthly repayment.
A fixed rate differs from a variable rate mortgage in that your payments may see saw go up and down according to the Bank of England Base Rate.
However with a fixed rate mortgage you have the security of knowing exactly how much you will repay every month, despite any changes in the Bank of England Base Rate or changes in your lenders standard variable interest rates.
You need to beware of course that when the fixed rate period is at an end, your repayments will revert to the standard variable rate of the particular lender your with.
To find out more just call The Bad Credit Mortgage Centre now…
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