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How to Get a Low Fixed Mortgage Rate in the UK

A competitive fixed mortgage rate in the UK is only available to people who are least likely to default on the terms of the loan agreement. Although adverse credit deals can be found, they're far more expensive. If you want to get the best fixed mortgage interest rate, you're going to need to prove that you're a reliable payer. This means that you're going to have to take steps to improve your credit score prior to submitting your application.

Who Will Benefit from a Fixed Mortgage Rate in the UK?

The most probable beneficiary of the fixed interest mortgage deal is the family that requires certainty. If you don't have much disposable income available at the end of the month, you need to know how much you're paying. If the economy is in a period of growth and is showing signs of over-heating, it's probably time to consider getting a fixed rate loan.

How to Get the Best Fixed Rate Mortgage

  • Credit report errors: Order a statutory copy of your credit report for £2 each from Experian, Equifax and CallCredit, the 3 credit reference agencies. The onus is on you to scrutinise each report and make sure that the information is 100% accurate before applying for a mortgage.
  • Pay debts on time: Punctual repayments are fundamental to a good credit score. The longer it's been since you last defaulted, the better this is for your credit rating.
  • Pay down debts: The more money you owe, the more likely you are to default. If you have any savings in the bank, use this money to reduce the amount you owe your creditors.
  • Electoral register: Make sure that you're registered to vote because this is how lenders verify your address.
  • Credit applications: While lenders expect you to make credit applications, don't make too many of them. Do your research and only apply for fixed rate mortgages when you qualify.

Should I Use a Mortgage Broker?

A professional advisor isn't just an invaluable source of advice, he'll trawl the market for the best deal. Brokers have useful industry contacts that can help you to get exclusive deals. However, they don't provide this guidance for free. You should expect to pay about 0.5% to 1% of the value of your loan, but this doesn't have to be paid upfront. You need to establish whether the saving exceeds what you could achieve on your own.

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