Fixed

A fixed rate mortgage is where the interest rate payable to the lender is fixed for a specific period of time. Lenders may offer from one year to 25 years. The most common period of fixed rate mortgages are between 2-5 years.

The advantages of fixing the interest rate are:

• Easy Budgeting
• If interest rates rise, the payments are fixed so payments are not affected within the period.

The disadvantages of fixing the interest rates are:

• If interest rates fall, the borrower will not benefit as payments are fixed within the period
• If the borrower wishes to pay the mortgage within the scheme period, an early repayment charge will apply.

Overall, a mortgage borrower may decide to fix payments, as a 1% fall in the variable rate is ‘good to have’ but a 1% increase in the variable rate may cause financial problems.

First time buyers prefer fixed rate mortgages as they prefer to know exactly the payments each month as oppose to a payment which fluctuates. Our mortgage broker will advise the right deals based on your circumstances.

If you require mortgage advice on fixed rates and you’re a first time buyer; please submit your details above and one of our mortgage brokers will call you. We Know Mortgages Ltd have access to thousands of mortgage products across the high street and building societies. We’ll guide you through the mortgage process from start to finish. We are based in Manchester city centre.