Getting a mortgage is tough but repayment of a mortgage is tougher. You pay off your debt over an extended period, making constant threat of failing to clear all dues unless the final settlement. You may refrain from getting the title of your property if you do not keep up the repayments. Now mortgage repayments are easier to manage with best 5 year fixed mortgage rates with no fees.

What is a 5 year fixed rate mortgage?

A fixed rate mortgage is a mortgage that allows you to pay your debt at a fixed interest rate for a specific time. A loan that maintains the same interest rate for five years is known as a 5 year fixed rate mortgage. However much the Bank of England rates rise or fall, the interest rate will be same for the first five years. Once five years are over, the rate will come back to standard variable rate.

What are the benefits of fixed rate mortgage?

Fixed rate mortgages can help you repay the debt with more ease. Here are some of the benefits of these loans:

  • Tight budget is not a problem - Knowing the amount of repayment that you will pay every month, you can easily manage your instalment along with your regular outgoings. If you are a first time buyer, you should prefer buying a five year fixed rate mortgage.

  • Peace of mind - Since the interest rate will stay static throughout five years, you do not need to worry about increasing rates of Bank of England. No unexpected rise in rates will come as a shock to you. You know what you have to pay.

  • It helps in budgeting - You are not going to catch hidden surprises. You can easily make a budget around your repayments and other expenses effectively. It is your fixed expense. As you receive your salary, you will put aside the money worth of your instalment.

Please note that your interest rate will not change until five years are over, and in the meantime if the rates of Bank of England drops, your lender will not allow you to avail lower interest rates.

Do they charge hidden fees?

Shine Mortgages charges no hidden fees. We maintain transparency from the beginning. We also provide customer care support to ensure that all of your doubts and queries are resolved. When you compare mortgage deals, do not forget to ask about hidden or upfront fees. Beware of mortgage lenders who charge hefty hidden fees. Please research carefully and choose the best deal.

Three features of our fixed rate mortgage deal:

  • No Hidden Fees
    We will give you no hidden surprises.

  • Personalised Deal
    We will offer the deal that best suits your budget.

  • Competitive Rates
    Our standard variable rates are lower than the other lenders.

features of our fixed rate mortgage deal

How to pick the right five year fixed mortgage rate

Borrowers do not want to handle the pressure of unpredictable fluctuations in interest rates. This is the significant reason for leaning towards fixed rate mortgages. Whatever the reason you choose these types of mortgages, you have to consider various factors before sealing the deal. While choosing the best mortgage deal, bear the following things in mind:

  • Mortgage rates are determined after considering your repayment history, credit scores, location and the size of your deposit. The higher the down payment, the lower the interest rate will be. If your credit rating is stellar, you can get a mortgage deal at the lowest possible rate even if you have a minimum deposit size (5% of your property value).

  • Before you agree upon all terms and conditions, make sure that you have gone through them at least once and you have no doubt. You must know if your lender charges any upfront and hidden fees. Each lender charges different interest rate and processing fees. Do proper research and compare the total cost before clinching a mortgage deal.

How to Get a Five Year Fixed Rate Mortgage with a Bad Credit History

Not all lenders will approve your loan application if your credit rating is less-than-perfect. There is always a constant risk of default if the lender approves your mortgage despite your bad credit rating. If you are struggling to have a five year fixed rate mortgage, Shine Mortgages is an ideal lender.

How we will help you get it approved:

  • We accept people with poor credit history. Contact us and tell us about your financial situation. Then, we will go over your income statement to decide on the rate of interest. Bad credit borrowers may pay a bit higher yet reasonable interest rates than good credit buyers.

  • People with good credit rating may get the mortgage if they submit the minimum amount of deposit required, but it will go up to 20% in case of bad credit rating.

  • Pay Bills
    Pay your bills on time; even a few late payments can pull your score.

  • Be Consistent
    Be consistent with your repayments of debts and utility expenses.

  • Contact Your Lender
    Your lender may suggest you alternative repayment plans if you struggle to make your ends meet.

ways to improve your credit score

Five Year Fixed Rate Mortgage FAQs

  • What happens when the period of five years expire?
    At the end of five years, your mortgage will return to standard variable rates.

  • Can you pay off within five years?
    Yes, you can pay off your mortgage within five years. You can switch to another deal. However, it will cost you some fees.

  • Can you get mortgage for more than five years?
    Yes, it may be more than five years. You need to meet the criteria set by your lender.