Censeo Financial: Which mortgages have better rates?

Specialist brokers discuss fixed rates and loan-to-value mortgages

Introducing Censeo Financial

Censeo Financial are an award-winning mortgage broker specialising in Shared Ownership and affordable homeownership. Having been trading for over 16 years, we work with many housing associations, councils and developers and have helped thousands of first time buyers get onto the property ladder. We have access to all lenders who offer Shared Ownership mortgages and often get exclusive deals that you wouldn’t get from going to a lender direct.

We strive to offer the best service possible and to find our customers the best mortgage for their personal needs saving time and money.

Comparing mortgage rates

Longer-term fixed rates are often lower because they provide more stability and less risk for both lenders and borrowers. When you opt for longer fixed-rate terms, such as five or 10 years, the lender has a guaranteed income stream for a longer period, which reduces their risk. This reduced risk allows lenders to offer lower interest rates.

Additionally, longer-term fixed rates provide borrowers with peace of mind by locking in a consistent interest rate for an extended period. This can be especially beneficial in times of economic uncertainty or when interest rates are expected to rise. This could mean paying a slightly lower or higher interest rate at the time of application to secure this stability and avoid potential future rate increases. Many fixed rates have product fees to secure the rate and usually have a product charge if you repay the loan before the end of the term, or where you make additional overpayments that exceed the limit the mortgage product allows.

When it comes to mortgage rates and larger deposits, lenders consider this as a lower risk because you are borrowing a smaller portion of the property’s value, resulting in a lower loan-to-value (LTV) ratio.

Furthermore, a larger deposit may also indicate financial stability and a lower likelihood of defaulting on the mortgage. Lenders typically reward borrowers with stronger financial profiles by offering them more favourable interest rates.

A longer fixed term may not be the right choice for everyone, there are various mortgage products available including tracker and variable rate discount products. Equally, having a smaller deposit doesn’t mean that you won’t be able to get a mortgage. There are many mortgage products available across a range of lenders which can accommodate most client profiles.

To ensure you find the correct mortgage product for you, it is best undertaken using a professional mortgage broker like Censeo who have access to most lenders, including those not on the high street and some that offer exclusive mortgage products through mortgage brokers. Our qualified and experienced mortgage advisors will provide advice to borrowers on the most suitable product for their personal situation and goals, often saving you time and money.   

Share to Buy is a one stop shop for affordable homes. On our website, you can search for properties, compare mortgages and find out all you need to know about alternative home-buying schemes such as Shared Ownership via our article index.