When looking to take out a mortgage, there are a number of options open to you and one of those is a fixed rate mortgage.
Put simply, a fixed-rate mortgage is a mortgage where your interest rate is guaranteed to stay the same for a set period of time. There are some advantages to such a mortgage and this can offer both peace of mind and stability because unlike a variable-rate mortgage, such as a tracker or discount mortgage, you will know exactly how much you need to repay each month during this period.
This is by far one of the most common forms of mortgages and there more fixed-rate mortgages available than any other type of lending available.
Please note that monthly payments will not vary during the fixed term so budgeting is easier, however early redemption fees may apply which will l be limited to a maximum 10% repayment. Whilst fixed, interest paid over the fixed period may be more than a variable rate deal.
Fixed rate mortgages offer a wider range of benefits but we would always recommend to take professional advice as to which mortgage option is the best to reflect your personal circumstances.