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A fixed rate mortgage is just that, the interest rate that the mortgage is taken out with will remain for the life of the mortgage regardless whether the interest rate changes or not.
This type of product is usually taken out for a period of one to five years although many lenders now are including deals for ten or even twenty-five years.
Those who are on a lower income may find that this type of mortgage is more suitable at least in the short term so that they are fully aware of their outgoings month on month. This will allow them to budget accordingly for the length of the fixed rate.
When this period is over the mortgage will revert to the lenders standard rate or if this is seems unsuitable a re-mortgage may be made and either a change of product or a change of lender may be profitable.
This product is exceptionally good if the interest rates are likely to rise but if they should fall it might not been such a good deal.
Conditions can also vary some may be portable and enable the mortgage to move with the home move, an overpayment choice may or may not be available and some may have an overhang period meaning there may still be a tie in even after the fixed rate term has ended.
As with all mortgages if unsure advice should always be taken so that all aspects of the borrowers needs and finances can be considered.
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