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Does length of fixed rate make a difference?
Bobthebuildercanyoufixit
Posts: 39 Forumite
Hi All,
Do mortgage lenders prefer someone who is happy to do a fixed rate for 5years than if they went for 2years especially if there circumstance isnt the best so if you have PDL or a high DTI etc.
for instance the 2year fixed rate has a smaller APR than the 5year fixed.
For some reason i heard somewhere that your more likely to get the mortgage if your fixed rate term is higher.
is this true? Or have i just made this up lol. If it isnt true i guess going with the 2year fixed is better because the APR is lower and also in 2years time it could be that the interest rates decrease.
Many thanks,
Do mortgage lenders prefer someone who is happy to do a fixed rate for 5years than if they went for 2years especially if there circumstance isnt the best so if you have PDL or a high DTI etc.
for instance the 2year fixed rate has a smaller APR than the 5year fixed.
For some reason i heard somewhere that your more likely to get the mortgage if your fixed rate term is higher.
is this true? Or have i just made this up lol. If it isnt true i guess going with the 2year fixed is better because the APR is lower and also in 2years time it could be that the interest rates decrease.
Many thanks,
0
Comments
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Lenders have no preference as to what product term customers opt for.1
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