This gives the Borrower reassurance in the fact that monthly payments over the fixed
period of the Mortgage are unchangeable regardless of the Bank of England base rate.
However, once this period is concluded, the rate will usually revert to the Mortgage
Lender’s standard variable rate.
Should you decide to take out this type of mortgage and the Bank of England base
rate falls, you could end up paying significantly more each month but, if the base
rate rises, there is no change to your repayment amount.
Fixed rate mortgages give the Borrower the benefit of being able to predict likely
expenditure and therefore it makes it easier to budget in the early years of the
NB: In most cases, early repayment will result in charges being
levied and it is worthwhile establishing in advance what these are.
It must be noted that YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS
ON YOUR MORTGAGE.