FIXED RATE MORTGAGE

With a fixed rate mortgage, the interest rate is fixed for a given period, normally between two to five years. That means you know exactly what your monthly payments are during the fixed period. If you move to another rate before the end of the fix you will normally face Early Repayment Charges.

Fixed rates can be extremely competitive, particularly in a low rate environment. However, you always face the risk that rates could fall further, leaving you on an uncompetitive rate .