This offers you a mortgage with an interest rate that is set for a period of time. The rate then reverts to the lender's basic mortgage interest rate, commonly known as the Standard Variable Rate (SVR).
Plus Points: Knowing the interest instalments will not fluctuate during the fixed period allows you to plan your finances.
Points to Watch: These mortgages sometimes have early cancellation penalties that can lock you into staying with the lender for a time after the fixed period. This could then tie you into an uncompetitive mortgage.
2 standard repayment methods for Fixed Rate Mortgages:
