Fixed Rate mortgages

A fixed rate mortgage is self-explanatory. With this mortgage, the rate of interest is fixed for a defined term, usually between six months and five years. After the end of this term, the mortgage will revert to the lender’s standard variable rate.

The attractions of this are that it makes it easy for you to plan your monthly outgoings, as your mortgage payments will remain constant during the fixed-rate term. Not only that, it also protects you against any rise in interest rates during that time.

On the other hand, you will miss out if interest rates fall. Unfortunately, if this happens then you can’t simply switch to a more favourable rate. Lenders frequently impose penalties on borrowers who change their mortgage before the fixed-rate term has come to an end. Some penalties are more punitive than others, so make sure you shop around before committing yourself.

For more information please click on the type of mortgage you are interested in:

• Fixed Rate Mortgages - A fixed rate of interest over a defined term
• Variable Rate Mortgages - Mortgages at the lenders basic rate
• Discount Rate Mortgages - Promotional discounted rate mortgages
• Capped Rate Mortgages - Combined fixed/variable rate mortgages

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