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What is a Fixed Rate Mortgage?
Fixed rate mortgages are extremely popular in the United Kingdom. Simply put, it will allow you to fix the rate of interest over an agreed period of time - usually two, three or five years. However it has been known for mortgage companies to offer deals from 6 up to 25years. |
A general rule of thumb for fixed rate mortgages is that the longer you sign up for, the higher interest rate you will be charged over this period of time. The internet however has introduced so much competitiveness between the mortgage lenders that interest rates for each of these time periods may not greatly differ so don't for get to compare mortgage offers.
The cost of having a fixed rate mortgage is usually around £500 to £1000.
The advantage of a fixed rate mortgage is that the interest rate you pay will remain identical through your contract wether or not the general interest rate rises. However should it fall, you will be paying more money to the lender so you should weigh up your personal circumstances before you make the all important decision.
Should you like to know where you are each month with payments and are happier keeping the amount the same all the time, a fixed rate mortgage could be for you.
Visit www.aph.org.uk and let us find you a fixed rate cheap mortgage deal. | 
