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September 28, 2018 by: Ryan

Should You Opt For 5 Year Mortgages Like The Rest Of The UK

There are a wide variety of mortgage options available but you can generally split the types into two – fixed rate mortgages and variable rate mortgages. With fixed rate mortgages, the interest rate stays the same for the entire term of the mortgage loan. This is unlike variable mortgages where the interest rate changes monthly, going up or down depending on the influence of market forces.

Before you decide if fixing a 5 year mortgage is the right option for you, there are some things you need to take into consideration. For instance, the shorter the term of a mortgage, the larger your monthly payments will be. This means with a five year mortgage, your monthly payments will be less than that of a one year mortgage but more than that of a ten year mortgage. This means your lender will require that your income be high enough to facilitate your monthly repayments, which makes lower income earners less likely to qualify for a five year mortgage.

Other factors to take into consideration include:

  1. With a five year mortgage, your interest rate is fixed for the five year period which means you know exactly how much you are liable to pay every month. This predictability makes for easier financial planning and better ease of mind. But in circumstances where interest rates generally drop below your fixed rate, you will find yourself stuck paying more interest than you should. This is why it is best to enter a fixed mortgage loan when interest is as low as possible.
  2. Five year mortgages typically come with lower rates as compared to a 15- or 30-year mortgage. Said difference in interest rates will greatly influence how much you end up repaying the bank. This means the cost of a five-year loan compared to a loan with a longer term will be in your favour with a 30 year loan possibly costing almost double what you’d pay under a five year mortgage. To help you calculate the cost of a loan, many mortgage providers offer mortgage calculators.

Why you should consider taking a 5 year mortgage?

If you are certain that your financial condition will not change for the worst during the term of a 5 year mortgage, then such a loan might be for you. 5 year mortgages are popular among UK homeowners because of their predictability, convenience and relatively little risk.

If you can secure a low interest rate for your five year mortgage, the merrier as this will free up more money every month that you can put into savings or other investments. At least with a five year mortgage, you know that for the duration of its term the interest rate will definitely remain unchanged.

If you plan on buying a home to retire to or live in for years to come, then a five year mortgage could be right for you. Just bear in mind that each individual’s circumstance is unique and it pays to consult a mortgage expert before making your final decision

 

How Long Does it Take To Get Your Red Light Ticket in The Mail

How Long Does it Take To Get Your Red Light Ticket in The Mail

February 12, 2019 By Ryan Leave a Comment

Getting a red light ticket is so frustrating. Just when you think you’re going to make it through the intersection in time, the light turns red and the camera snaps a photo of your license plate. If you’ve received a notice for a red light ticket, don’t assume you have to pay it right away. You may be able to get out of it with

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Is Marie Kondo’s Cleaning Method the Right Way?

February 11, 2019 By Ryan Leave a Comment

Since Netflix released the show called Tidying Up with Marie Kondo, the star has become a divisive figure. Some people appreciate the way she cleans up the place while others think she is wasting resources. Kondo’s primary philosophy is to let go of things that do not bring you joy. You need to touch every item in your house when you clean. If you think

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Tips on Disposing of Furniture You are Not Using at Home

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February 10, 2019 By Ryan Leave a Comment

You need to invest in quality furniture that will last long. However, even with proper maintenance, there will come a time when you need to dispose of the furniture you use at home. These are some tips to aid you in identifying what to do with the furniture that you are not planning to use anymore. Hire a furniture removal company Your local government might

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January 30, 2019 By Ryan Leave a Comment

  Most business professionals are aware of the concept of a 30-second elevator speech about their company or skills that they must be ready to present at a moment’s notice. The resume is the same type of bite-sized introduction except that it’s on paper instead of in person. Candidates for open sales positions may have less than 30 seconds to capture the attention of the

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About

Hi guys! I’m Ryan. I am a recent graduate from a Journalism program and have a huge passion for writing. I am also the editor of Get Under Skeleton.

A little bit about me is that I love learning about all things and I am always inquiring and asking questions about,

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about me

Hi guys! I’m Ryan. I am a recent graduate from a Journalism program and have a huge passion for writing. I am also the editor of Get Under Skeleton.

A little bit about me is that I love learning about all things and I am always inquiring and asking questions about, Read More…

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