Most fixed rate plans will be subject to an early repayment penalty during the fixed rate period. This penalty is usually a percentage of the mortgage, which typically equates to thousands of pounds. Fixed rate mortgage plans that have an extended early repayment penalty may lock the borrower into paying over the odds for their mortgage in the long term. Other fees may apply and vary greatly between lenders. It is important to consider all fees, when comparing mortgage plans.

The main benefit of a fixed rate mortgage plan is that it offers certainty, unlike a variable rate which will rise and fall inline with the Bank of England base rate. A fixed rate mortgage is a sensible choice for first-time buyers, who would be unable to afford any increase in their mortgage payments. If the Bank of England increases the base rate, a fixed rate mortgage plan will remain unaffected. Conversely, if rates fall, the borrower will reap no benefit. For this reason, it is important to weigh up the benefits of a fixed rate plan against its disadvantages. Generally, if the rate offered is very low, a long-term fixed rate plan is likely to prove good value. When the base rate is high, providing the fixed rate is comparatively low, a short-term fixed rate plan may be a good idea.

To secure a low fixed rate mortgage plan, a shopper should compare deals offered by a number of different providers. Such as halifax fixed rate mortgages.

Generally a mortgage calculator will calculate your monthly payments and fees and they will also show you repayment tables, which help you to understand how your mortgage works.

When using a mortgage calculator you are asked to supply information about the loan sum to be borrowed together with the loan interest rate, the amount of property taxes and if relevant information about any private mortgage insurance. In return the calculator will tell you how much your monthly payments will be, the cost of fees together with the amount of interest that will be paid.

It is worth understanding that mortgages are front loaded with interest, which means that at the beginning of the mortgage the repayments you will paying back really only consist of interest. When you have been repaying the mortgage for a length of time then you will start to pay back the initial sum of the loan borrowed.

Not only are mortgage calculators helpful when taking out a new mortgage they are also helpful when you are budgeting to refinance an existing mortgage. It is a tool worth using, as you may be surprised that the dream house that you thought was out of your reach is actually more affordable than you thought.

Mortgage calculators are available on almost all mortgage lender websites and they have the benefit of being free to use. If you do come across a website charging a fee to use a calculator then please bear in mind that you are provided the same information as you are when using a free calculator. Also, by using a lenders mortgage calculator you are by no means committing to use that lender to obtain your mortgage.

Fixed Rate Remortgage

With this plan, the rate remains fixed for an agreed initial period, usually between one and five years. When this period ends, the rate will revert to the lender’s standard rate. This type of plan offers stability, allowing a borrower to know how much they must repay each month. If rates increase, those on a fixed rate plan will be protected from increased payments, however is rates fall they will not benefit from reduced payments.

Standard Variable Rate (SVR) Remortgage

This type of plan is linked to the Bank of England base rate. The rate set by a lender will typically be around two percent higher than the base rate. The rate will rise and fall in-line with changes to the Bank of England base rate. Rates will vary between lenders and depending on the personal circumstance of an applicant. Good credit applicants will be offered the lowest rates.

Discounted Variable Rate (DVR) Remortgage

This sort of plan involves a lender offering a reduced initial rate, typically for between two and five years. This rate will be less than the lender’s SVR. When the discounted period ends, the rate will revert to the lender’s SVR. The rate is variable, thus throughout the plan it will fluctuate in accordance with the Bank of England base rate.

Capped Rate Remortgage

This type of plan combines aspects of a fixed and variable rate mortgage. A capped rate means that the rate cannot go above a set level, yet it can fall, thus, a borrower is protected against rate increases, whilst also being able to benefit from rate cuts. However, there are two drawbacks. Firstly, capped rate plans are subject to an arrangement fee and secondly, they come with a higher standard rate of interest.

Flexible Remortgage

A flexible plan allows the borrower to adjust the monthly amount they pay. Overpaying allows the debt to be cleared sooner, thus reducing the overall interest paid. Underpaying or a payment holiday can free up cash that is needed elsewhere.

Whatever type of plan is chosen, to find the best value deal a shopper should compare deals from a variety of different providers.

Halifax offer a selection of fixed and variable rate mortgage deals to suit a variety of needs. Initial rates range from 4.99 to 5.74 per cent and the Annual Percentage Rate (APR) ranges from 7.50 to 7.70 per cent. A Halifax mortgage may offer an annual review, online tracking, Loan-to-Value (LTV) ratio of 90 per cent, daily interest rates, repayment holidays and 'no legal fee' re-mortgages. Halifax mortgages can be grouped into three main types:

Halifax Flexible Rate Mortgage

With this halifax mortgage, repayments may be altered to suit the needs of the customer. Monthly mortgage repayments may be increased to pay off mortgage debt early. This will reduce the overall cost of interest payments. Alternatively, the customer may choose to take a repayment holiday or reduce their monthly repayments. Extra funds may be borrowed at the same rate of interest as the mortgage.

Halifax Fixed Rate Mortgage

This choice offers more security and involves less risk than a flexible rate option. The rate of interest and term of the mortgage will be set at its outset and will not change. This means that budgeting is easy and simple. The rate of interest paid will not increase or decrease in-line with the Bank of England base rate. This means that a fixed rate mortgage holder is protected against the effects of rate increases, however they will not benefit from the effects of rate cuts.

A fixed rate mortgage is not suited to a customer who may wish to pay their mortgage off early or seeks repayment flexibility.

Halifax Tracker Rate Mortgage

A tracker mortgage is linked to the Bank of England base rate. The interest rate charged will be higher than the base rate, but will rise and fall in-line with it. This sort of mortgage is beneficial if rates fall.