Fixed Rates of Interest
Just as there are many forms of mortgages, so are there many different ways to pay them off. Fixed rate mortgages protect you from the uncertainty of fluctuating interest rate, enabling you to budget more accurately.
A fixed rate mortgage may work for or against you. Imagine you take out a 5 year fixed mortgage at 7%. If the standard rate of interest falls to 5%, you will have lost out. However, if interest rates shoot up to 13%, you would have make an excellent decision.
Here is an example of a typical fixed rate mortgage:
Three fixed rate schemes are offered for either 2, 3 or 10 years:
- 5.49% fixed for 2 years (APR 7.2%) - Special for First Time Buyers.
- 6.99% fixed for 2 years (APR 7.5%)
- 7.99% fixed for 5 years (APR 7.9%)
- 8.99% fixed for 10 years (APR 9.0%)
As you can see, the longer the term, the higher the rate of interest. The mortgage
lender therefore covers themselves as much as possible.
View the best market rates currently available here
(N.B. Rates vary depending on % Size of Mortgage to House Value)
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.