The Barclays Fixed Rate Mortgage: Features & Benefits
We will continue our discussion on housing and mortgages as promised, but I would like to close on this series of posts sponsored by Barclays Kenya by giving a bit more detail on their fixed rate mortgage product.
Definition
A fixed rate mortgage is a mortgage where the interest rate is guaranteed to remain at an agreed upon level for a set period of time, regardless of changes which may occur in the economy within that time. Barlays’ fixed rate mortgage gives you a guaranteed interest rate of 15.9% for the next 3 years, after which the bank will have a right to review it.
Benefits
- For the first 3 years, your repayments are fixed and for that reason you can plan better and have peace of mind. In addition to this, you are protected from interest rate fluctuations which could increase your interest repayments. As we saw in the last post, at the beginning of a mortgage repayment, you pay a lot in interest, and very little principle. When the interest rate is fixed, it protects you.
- The negotiation fee for the mortgage is fixed at 1%, which I believe is the lowest in the market currently.
- Legal costs which are usually significant will be included in the loan, this means you won’t have to raise these in addition to the down payment.
- If you have an existing mortgage, you can transfer it to Barclays, and you will enjoy the fixed rate for 3 years.
- If you are looking to remortgage your house, the terms are the same as a new mortgage
There you go. If you would like more information, follow this link, and as bankers love to say, terms and conditions apply.
This post is the final one of a 4 part series on mortgages sponsored by Barclays Bank. Read the first post on this series here, the second post and the third here
