WhatHouse.co.uk Advices on Whether a Long Term Fixed Mortgage is Really the Best Mortgage Deal

April 15, 2012 - PRLog -- It is currently  confusing and difficult time in the mortgage market. There are not as many products around as there used to be and lenders are placing much more stringent conditions on borrowers. WhatHouse.co.uk have put together a team to advice on the merits of different mortgage products available, to compare offers on the market and find the right type mortgage to suit the borrower's particular circumstances.

The borrower maybe a young person trying to get on the housing ladder but struggling because of the necessity for higher deposits required these days. WhatHouse.co.uk mortgage team can help look for mortgages with no fees or special discounts for the first year or two. And with new Government backed mortgage schemes for new houses, there is still the possibility of getting a 95% mortgage in certain circumstances. Or maybe the borrower wishes to change from a fixed rate interest only mortgage to a repayment scheme or to a new provider that allows mortgage payment 'holidays'. There are various options and schemes on the market but to get the mortgage that is right for the borrower, it is important to discuss the requirements with an independent financial mortgage advisor.

For many years long-term fixed rate mortgages have been the stable of the UK mortgage market, ensuring your repayment remain steady for ten years or longer, allowing you to budget easily. However, recent research shows that these long-term fixed rate mortgages have all but disappeared and those that took out such long term mortgages may have paid out thousands more than they needed to in interest charges. Figures from summer 2011 showed that there were just three fixed-rate mortgage deals for ten years or longer on the market, compared to 125 similar deals 3 years ago. This despite there being a huge demand for such a product. When one Building Society launched a ten year fixed rate mortgage it had to close the offer after just 2 weeks having sold the full quota. But while long term fixed rate mortgages offer security in terms of knowing what you will have to pay each month and for how long, there are drawbacks, mainly that the borrower ends up paying far more in interest than if they had taken a two year fixed term mortgage and then reverted back to the lenders variable rate after the initial fixed period. There are also usually early redemption charges.

So before opting for any particular type of mortgage it is important to take proper advice and see what is on offer and what matches your exact requirements. Keith Osborne of whathouse.co.uk states: "Many of us have no idea what we'll be doing in ten years time. We'd therefore be reluctant to commit to a mortgage deal that ties us in for this period."

WhatHouse.co.uk now offer a mortgage help line open daily and can point you in the right direction. What house Mortgage Advisers is a trading arm of Pocock Rutherford & Co Ltd which is an appointed representative of Paradigm Financial Advisers ltd, authorised and regulated by the Financial Services Authority.

Visit http://www.whathouse.co.uk/mortgages for more information.