With a fixed rate mortgage the interest will remain the same throughout the introductory term of the deal which is typically between 2 and 5 years and will usually revert back to your lenders Standard Variable rate when the deal ends. Commonly, with such a scheme, if you repay your mortgage within the early years of the term (& commonly within the ‘introductory deal period’) you may be required to pay the lender an early repayment charge.
Advantages of fixed Rate Mortgages
Security that your mortgage interest repayments will remain the same throughout the term of the initial deal even if the general level of interest rates do rise which makes this product great for budgeting and planning ahead.
Disadvantages of fixed Rate Mortgages
You will be tied to this rate for the length of the deal so if the general level of interest rates do fall you will not normally be able to take advantage of the rate reduction. If you want to get out of the mortgage early (as defined in your mortgage terms & conditions), you will normally be charged an early repayment charge which will vary from lender to lender but can often be thousands of pounds.
Your Home may be Repossessed if you do not keep up with your Repayments
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.