In a world of fluctuating interest rates you may be looking for something that will guarantee that your monthly payments won’t rise in the years to come. Well a fixed rate mortgage can fix the amount of interest you pay.
That said, you may end up paying more than with a variable rate mortgage. So first, you’ll have to make sure a fix is definitely for you.
A three year fixed-rate is a mortgage where the interest rate, and your monthly repayments, stay the same for three years. They offer fixed payments and protection from interest rate rises, but are slightly more expensive than variable rate mortgages.
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.