If you choose a fixed rate mortgage your mortgage payments will remain constant for a set period of time and will not fluctuate, even if the Bank of England Base Rate changes. So, you will pay the same interest rate every month which makes budgeting a bit easier. This can be particularly helpful if things are tight financially.

The time frame for a fixed rate mortgage term can, in theory, be any length but the ones you will see most frequently are two, three or five-year terms. They can be a lot longer though. At the end of the fixed rate period your mortgage rate would then revert to the lender’s standard variable rate (SVR). It used to be the case that fixed rate mortgages were normally a little lower than the SVR but with interest rates now at record lows it is often the other way around. Short term fixed rate mortgages are those where the rate is fixed for five years or less. Long term fixes are from over five years and anything up to 25 years. A mortgage which is fixed for 25 years is also known as a lifetime mortgage but these are very rare. As a rule of thumb, the shorter the term of the fixed rate period the lower the rate is likely to be. This is because pay a premium for having the increased period of security. People like short-term fixes as they give the borrower the chance to reassess the market in the not too distant future.

The peace of mind that comes with a fixed rate mortgage is the main advantage of having a one. And if the Bank of England raises its base rate rises during the period you could end up saving yourself thousands of pounds. Conversely, if the base rate falls you could end up paying over the odds and might then wish you had stuck with the standard variable rate. Other things that you need to be on the lookout for with fixed rate mortgages are the associated fees. Both arrangement fees and early repayment charges (ERCs) are often higher than with other types of mortgage. ERCs will usually apply for the entire length of the fix and can be as much as 5% of your outstanding loan. The size of the fee usually decreases in steps as time progresses.

There is a lot to consider so it is a good idea to talk to a mortgage advisor who can advise you on all the different options. They will tend also to have access to deals which are not available on the high street.

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About the Author:
If you are considering fixed rate mortgages or any other type of mortgages then visit http://www.findmortgagedeals.co.uk where you will find comprehensive guides as well as the best deals and all the latest mortgage and property news. Fill out our free 1 minute mortgage form and find out how much you could be saving on your mortgage.
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The latest attempt to rescue the US from an unprecedented housing crisis is set to be implemented. State housing finance agencies across the nation were challenged be the Obama Administration to propose innovative programs to assist those having trouble making their mortgage payments.

The funds for these state government mortgage assistance programs will come from the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets, established in February 2010. The federal fund was just one of the many housing recovery programs established to stimulate economic recovery. This particular fund was created help homeowners in states with the sharpest decline in housing prices (over 20%) and unemployment rates exceeding 12%.

The goal of the fund and the state programs are to rescue homeowners from certain foreclosure because of unemployment, underemployment, or medical crisis.

The US Treasury has already approved housing finance agency programs in Arizona ($125.1 million), California ($699.6 million), Florida ($418 million), Michigan ($154.5 million), and Nevada ($120.8 million). Additional programs are expected to be approved in North Carolina ($159 million), Ohio ($172 million), Oregon ($88 million), Rhode Island ($43 million), and South Carolina ($138 million).

As an example of the type of mortgage assistance provided in these approved programs’ we’ll take a look at the first to be implemented, Michigan State Housing Development Authority’s (MSHDA) program.

Michigan’s Helping Hardest Hit Homeowners plan is structured to provide the following assistance:

Help unemployed borrowers make mortgage payments,
Assist unemployed borrowers or those hit by medical crisis to catch up on missed mortgage payments, and
provide matching dollars to assist homeowners reduce the principal on homes they can no longer afford due to reductions in income.

Even before implementation some states are asking for more. Michigan’s Governor Jennifer Granholm stated, in her recent announcement of the new mortgage assistance, that she will be asking the Obama Administration to also consider expanding the program to “Michigan’s long-term unemployed whose benefits have expired.”

The big caveat in all of these government home loan assistance programs is the need for servicer participation. There’s no requirement for any of these mortgage servicers to participate or even assist these borrowers headed for foreclosure.

Mortgage servicers are the mortgage lenders and specialty companies that actually manage these mortgages. There job is to collect payments, manage escrow, and make adjustments and modifications to these loans on behalf of investors that own the home loans in packaged into mortgage-backed securities.

Homeowners currently receiving unemployment compensation, have experienced unexpected medical expenses, or have had a significant reduction in income should contact their mortgage servicing agency immediately. Use the contact information typically available on your mortgage payment statement and ask about available government assistance.

Like a loan modification this process is likely to be tedious and frustrating, but good consistent effort may bring some mortgage relief.

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About the Author:
Learn more about Michigan’s Helping Hardest Hit Homeowners. program. Hall Financial, a Michigan mortgage lender, is always ready to assist you with any home buying or refinance questions.
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