25 year fixed rate mortgage: is it the right choice

With the current mortgage crisis going on we are all looking for the best deals, but these are now getting hard to come by. Kent Reliance Building Society might just have the answer for those who like to take a gamble. The mortgage lender is now offering you a 25 year fixed rate mortgage, for up to 75 percent of the value of the home you wish to purchase. The mortgage will be fixed at 5.98%, and many people might just take this kind of offer out because of the fears of huge interest rate rises.

You do have to be a very brave person to have your mortgage fixed for 25 years; the thing is what happens if we see a huge drop in interest rates to something like 3% then you will be left with a sour taste in your mouth. This kind of mortgage is of a great benefit in this current climate, but it is not one that you should walk in to blind.

Another thing that you have to consider with any fixed rate mortgage is if you wish to pay the loan of early, you will have to pay 3% of the amount repaid by way of a capital repayment or in full redemption. So if you find that you are able to pay the mortgage of in full within the 25 year period, then you had better put your hand in your pocket and pay Kent Reliance Building Society some extra money.

The booking fee for this 25-year fixed rate mortgage is £935 with an additional £60 administration fee.