Looking for a reliable repayment plan in a world of fluctuating interest rates? Well a fixed rate mortgage can fix the amount of interest you pay, in this case for two years.
However, you’ll have to make sure a fixed rate is for you before you take the plunge since in the long run they can prove to be more expensive than variable rate alternatives.
A two year fixed-rate is a mortgage where the interest rate, and your monthly repayments, stay the same for two years. In return for paying a slightly higher interest rate than on variable rate mortgages you get the peace of mind.
These types of mortgage are best suited to people who don’t want to worry about rising interest rates. In particular, they may be right for anyone who knows they would struggle to make their mortgage repayments if they were to rise.
Just be aware, if you go for a fix you will pay for the security of a fixed rate. The interest rates tend to be slightly higher than on tracker, or variable, mortgages. So, if you could afford a rise in interest rates, and are prepared to take that risk, a variable mortgage may cost you less.
Use our mortgage rate index to get the very latest rate predictions in order to make the most accurate decision.