Fixed Rate

The main advantage of a fixed rate mortgage is that it guarantees the amount of your monthly mortgage payment for a set period of time so that regardless of what happens to the interest rates, your mortgage payments will remain the same. This can give you peace of mind and enable you to manage your budget for the first few years of your mortgage. After the fixed term has expired you will likely revert to the standard variable rate.

A fixed rate is a good option if you want to be sure of your monthly payments for the immediate future but you should also bear in mind that if interest rates fall during the term of your fixed rate period you will not benefit from lower mortgage payments.