Mortgages

Fixed Rate

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 mortgage term.

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.