Information about
Fixed Rate Mortgages

With a Fixed Rate Mortgages the interest rate is fixed for an agreed period of time at a level agreed at the outset of the loan. When the period of time in which the interest rate is fixed comes to an end, the interest rate normally reverts to your lenders standard variable rate.

Fixed Rate Mortgages tend to be used for two main reasons:

* If interest rates are expected to rise, fixing the interest rate now may save you money. However, if the interest rate were to fall during the fixed rate period, fixing your interest rate will have been a costly mistake.

* You can easily manage your finances as, during the years the interest rate is fixed, you know exactly what you are paying each month.

The fixed rate period is usually between six months and five years. Incidentally, the Government has being trying to encourage the mortgage providers to offer mortgages where the rate is fixed for the whole life of the mortgage. However, the mortgage industry has not been enthusiastic and neither has the home owning public!

With a Fixed Rate Mortgage, the interest rate is usually fixed at a level which reflects the mortgage lenders view of which way interest rates will move during the fixed period. Therefore, if interest rates are expected to rise, your Fixed Rate Mortgage is likely to have a rate fixed higher than the lenders current variable rate. Conversely, if interest rates are expected to fall, your Fixed Rate Mortgage is likely to have a rate fixed lower than the lenders current variable rate.

So if you want to consider a Fixed Rate Mortgage, you would be well advised to talk to the qualified mortgage broker. If you ask for a quote now we’ll organise for one to phone you with the next 24 hours.
Mortgages