Fixed Rate

Interest rates

With a fixed rate mortgage, your monthly payment won’t change for a set period. At the end of your fixed rate, your lender will usually change your interest rate to their (SVR). It’s a good idea to review your mortgage at this stage because the lenders SVR may not be the best deal around.

Advantages

  • You know the exact amount you’ll need to pay each month, which makes budgeting easier.
  • Your monthly payment will stay the same during the fixed period, even if other interest rates increase.
  • Disadvantages:
  • Your monthly payment will stay the same during the fixed period, even if other interest rates decrease.
  • If you want to repay your mortgage early, there could be early repayment charges.