Fixed Rate Mortgage ?
Do you like to know what your monthly outgoings will be with as much certainty as possible? If your largest regular expense is fixed for a period time, would that be a great advantage to you? If so, perhaps a fixed rate mortgage is for you.
With fixed rate mortgages it sets the interest rate you will pay for a specified period. This will guarantee the amount that you pay for each month for the agreed period of time. Once the fixed time period is at an end, your repayments will be at the lender's standard variable rate.
The obvious advantage of this is that should you need to budget carefully over the first few years of your mortgage, you will be able to with a fixed rate deal. You will know how much you have to pay each month, and should the base rate rise you will not be caught out with sudden increases in payments. Should the interest rate rise above the fixed rate that you are paying, you will actually be saving money in real terms.
Don't forget that the reverse of this is also true. If the interest rates go down whilst your fixed rate deal is in place, then you will lose out. However, you will at least still know how much money will be coming out of your account each month, and there is a value on that.
Apply Today: