Do you consider taking a loan from a bank to buy your first home? It’s important to choose carefully your mortgage because it’ll bind you with paying a large amount of money for a long period of time – from 20 to 35 years. The interest rates are essential for your choice so let’s talk about them a bit.
There are two main types of mortgage rates – fixed and variable ones. Each has its advantages and disadvantages so you should learn their specifics before making up your mind.
1. Fixed rate mortgages
This type of loans is usually for up to 25 years. Many people who consider home removals London take advantage of these mortgages. Their main advantage but at the same time also disadvantage is that the borrower knows exactly how much money he/she should give every month. This is essential for everyone who wants to be able to plan his/her budget in advance.
2. Variable rate mortgages
They are much more flexible but hide a lot of risk. On the one hand, it’s possible your interest to go down but it’s also very likely to go up. There is nothing copper-bottomed in these loans so you must be careful if you decide to take advantage of them. But their flexibility attracts a lot of people.
If you have to consider a tight budget and you need cheap removals London, make sure that the mortgage that you’ll have will cover all expenses around changing your home. No matter which type of mortgage you’ll choose, make sure that you’ll be able to pay it off.
