Fixed Rate Mortgages
A Fixed Rate mortgage has an interest rate whuich remains the same for an agreed period of time, usually 2, 3 or 5 years.
Fixed Rate mortgages can be appealing to those who seek “peace of mind” about what their mortgage payment is going to be for a certain amount of time. However, there is of course a risk that if interest rates go down then you are left with an interest rate that is no longer competitive.
Choosing the right amount of time to fix the rate for is important: you may not want to fix your rate for a lengthy period if you feel that interest rates in general are going to fall over the coming years. That is why taking professional advice is invaluable: your adviser will assess your attitude to mortgage risk and ensure that you make the correct decision for you, outling the pros and cons in the process.