Fixed Interest Rate

How it works
Your payments are set at a certain level for a set period of time - for example, two years, five years, ten years or even longer. Unless the rate is fixed for the term of the mortgage, you are usually charged the lender's standard variable rate at the end of the fixed rate period.

Early repayment charge?
During the special deal period -Yes, with most loans
For some time after the end of the special deal - Yes, with some loans.

Is it for you?
Yes, if you want to know exactly how much you will pay for a specified period.
Yes, if you think mortgage rates will rise and you wouldn't be able to afford the increased mortgage payments.
No, if you think mortgage rates will fall (and can afford the increased mortgage payments if you are wrong).
Possibly not if you want to make overpayments or repay the mortgage early without paying an early repayment charge.

 

Your property may be repossessed if you do not keep up repayments on your mortgage.

The Financial Services Authority (FSA) does not regulate some forms of mortgage. 

The information set out on this page is intended to provide a general appreciation of the topic and it is not advice. Guidance should be sought from a specialist who is qualified to advise in your specific circumstances.

For more information on any aspect of mortgages please contact Surrey Financial Advice on 01483 211800 or email us at admin@surreyifa.co.uk  We will be happy to assist you.