Fixed Rate Mortgages

Fixed rate mortgages ensure that your repayments stay the same, even if interest rates rise. Of course, that means you can also get caught paying more...if interest rates fall - but for many people, the security of knowing how much they will have to pay each month is worth the risk that they might end up paying a bit more...The fixed rate is great for people who are a little stretched financially and need to know where they stand from pay cheque to pay cheque. They're also good value if interest rates look set to rise in the early years of a mortgage, although bear in mind that the mortgage providers are likely to be one step ahead of you and adjust their fixed rates accordingly. However, a fixed rate also means you could be lumbered with paying more than everyone else if general interest rates fall below the figure you've set yours at. But that's the risk you take in exchange for having certainty about how much you will pay each month.

In generally, you will find that fixed rate mortgages are only fixed for a few years (1, 2, 3 or 5 years).  The longer the term, the higher the risk for the lender and so the less favourable the offer. If you decide to  At any time, you should find that a fixed rate mortgage offer has around the same APR as a variable rate mortgage. 

You can find some great UK fixed rate mortgage offers here on this site.  Just click on the links on the left hand side to find out more!