Balancing Security with Flexibility: Discover Fix and Switch mortgages

In the dynamic world of mortgages, finding a product that perfectly balances security with flexibility can be a challenging endeavor. That’s why we’re excited to introduce two groundbreaking solutions – the “Fix and Switch” mortgage and our “Flexi-Lock” service.

The “Fix and Switch” Mortgage: Security Meets Flexibility
The “Fix and Switch” is a pioneering five-year fixed-rate mortgage that re-imagines the traditional concept. Its key differentiator? The Early Repayment Charge (ERC) is only applicable for the first two years. This means you get the lower rates and security of a fixed rate for five years and the freedom to switch to a different deal without any ERC after two years.

Benefits of “Fix and Switch”

Five-Year Rate Security: Guard against potential rate increases for a full five years, ensuring peace of mind and consistent monthly payments.

Two-Year Flexibility: Should interest rates decrease, you have the option to switch to a more favourable deal after two years, penalty-free.

Ideal for Various Needs: Whether you’re looking for long-term stability with a five-year fixed rate or short-term planning with a two-year fixed rate, “Fix and Switch” is designed to cater to a wide range of borrower needs.
Who Can Benefit from “Fix and Switch”?

  • Homeowners seeking the security of a lower cost, 5-year fixed rate but desiring flexibility.
  • Borrowers considering a 2-year fixed rate who also wish for extended rate protection.
  • Anyone aiming to combine rate protection with the ability to adapt to market changes.

“Flexi-Lock” Securing the Best Rates
Although the “Fix and Switch,” product is exclusive to one lender, our “Flexi-Lock” service is available across board and offers an unparalleled level of adaptability.

“Flexi-Lock” allows you access to an extensive range of mortgage products from various lenders, tailored to your unique circumstances.

How “Flexi-Lock” Enhances Your Experience with Us

  • Extensive Market Search: We meticulously search the market for the most suitable mortgage product for you.
  • Continuous Monitoring: Our team monitors the market continuously, ensuring you have the latest and best options.
  • Regular Communication: Enjoy multiple consultations with our brokers before your product’s launch, keeping you fully informed.
  • Flexibility to Switch: If we find a lower-cost or more suitable product closer to your go-live date, we seamlessly switch you over at zero cost.

Why Choose “Flexi-Lock”?
“Flexi-Lock” is ideal for those who prioritise both stability in their current mortgage plans and the flexibility to adapt to future market changes. Benefit from our market expertise and don’t miss out on favourable opportunities.

Is your mortgage coming up for renewal?
If your mortgage product is coming up for renewal in the next 6 months, we encourage you to get in touch with our mortgage brokers.

Speak to our award winning mortgage brokers
Whether you’re considering buying a new property, remortgaging, or just seeking advice on the best course of action in this volatile market, our team is here to assist you. Get in touch now on 0208 364 3444 alternatively click here to schedule a free consultation call.

Chances of Bank of England interest rate cut ‘unlikely’
The Bank of England is unlikely to cut interest rates in the near future as economists warn the chances “look very slim”. Over the past year and a half, the central bank has raised the UK’s base rate numerous times to 5.25 per cent to mitigate the impact of inflation on the economy.

Economists forecast members of the Bank’s Monetary Policy Committee (MPC) will keep interest rates at this level for another month. The committee is next set to meet to discuss potential changes to the base rate on Thursday (February 1).

This means that interest rates will remain at the highest level seen in 16 years which has been a blow to borrowers, particularly those in debt and households with mortgages.

However some economists believe a hold in base rate movement may impart more stability and create less volatility amongst lenders who have recently been competing on rate cuts.

UK mortgage rates fall for first time since 2021
In a sign of potential recovery for the UK housing market, average mortgage rates fell for the first time in over two years, according to Bank of England data released Tuesday.

This decline suggests a potential easing of the burden on homeowners as lower borrowing costs trickle through.

The BoE data also showed the “effective” interest rate — the actual interest paid — on newly drawn mortgages fell by 6 basis points to 5.28 per cent in December, marking the first drop since November 2021.

Ecomists beleive this data indicates a recovery in the housing market and perhaps the wider economy.

Net mortgage approvals for house purchases rose from 49,300 in November to 50,500 last month — the highest reading since June. Meanwhile, net approvals for remortgaging also increased from 25,700 in November to 30,800 in December, in a further sign that activity is returning to the property market.

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