Mortgage Broker Camborne

If you're in the habit of paying your bills late, this is likely to affect your credit score negatively – and the converse is true: paying your bills on time boosts your rating.

And remember that if you're actively trying to boost your score e.g. by paying a household bill on time, you'll only enjoy the boost if your name is on the bill.

For a set period, normally 2, 3 or 5 years, you have a fixed interest rate regarding your required repayment amounts. The main advantage is you'll know exactly how much you'll have to budget for each month to make your repayments and additionally, should interest rates rise, you won't suffer from having to shell out more.

The downside is your interest rate will normally be higher than what you'd have to pay for a hypothetical similar variable rate product and also, you'll most likely have to pay a large charge if you choose to repay the mortgage early, before the fixed period ends. This might be 3% of the whole loan.

When the fixed period ends, your loan is normally converted to one where repayments are determined by the lender's standard variable rate.