Fixed Interest Rate Mortgage

The interest rate applied to the loan is fixed for an agreed period of time which can range from 1 to 10 years.

The fixed rate option leaves for no risk associated with fluctuating variable rates as during the fixed rate period you know exactly how much you will have to pay each month.

However you will not benefit form any reduction in monthly repayments if the variable interest rate is reduced during the fixed interest period.  You will also incur a penalty if you wish to break the fixed rate.

1. Fixed Rate Loans
Warning: You may have to pay charges if you pay off a fixed-rate loan early.