Fixed Interest Rate

Long Term, Or Short Term
Fixed Interest Rates....

A fixed rate interest is a loan or mortgage with an interest rate that will remain at a predetermined rate for the entire period of the loan, and although the amount of principal and interest paid each month will vary with each payment, the total amount you pay is actually the same

The advantage of having a fixed rate interest loan is that you are protected from sudden and potentially significant increases in your monthly mortgage payments if there is a rise in interest rates, which can be a concern if your finances are stretched to the limit.

On the other side of the coin, the disadvantage is that it can be difficult to qualify for a fixed rate loan when interest rates are high and payments are less affordable. A mortage calculator can give you an idea of what your repayments are likely to be

Lenders typically tend to offer loans over 15,20 and 30 year periods and although the rate of interest is fixed, the amount you actually pay will depend on the length of your mortgage term. Many people opt for the 30 year fixed rate interest mortgage as this offers the lowest monthly payment, but generally there is a higher cost overall because of the extra period over which the payment is made

Shorter term mortgages offer you a lower interest rate, which allows for a larger amount of principal repaid with each mortgage payment, so the overall effect is that shorter term mortgages will cost significantly less overall