Whether you are looking for your first mortgage, or you’ve had one before. You will likely have heard of the term ‘Fixed Rate Mortgage’
But what is a Fixed Rate Mortgage?
Fixed Rate Mortgages are the most popular type of mortgage product right now. They work by fixing your interest rate and monthly payments for a set period of time.
The most common fixed rate periods are 2 years and 5 years. Although some lenders do offer other options.
Say you take a 2-year fixed rate mortgage.
That means your interest rate and your monthly payments will not change for the next 2-years.
A Fixed Rate is good at offering certainty in what you will be paying.
At the end of your fixed period, you revert onto the lenders variable rate. Which will likely be a lot higher!
This is where your mortgage adviser will step in to help you review this and ideally secure a lower rate
So if you want certainty in your interest rate and monthly payments for a set period of time. Then a fixed rate might be for you!
But always speak to a qualified Mortgage Adviser who can give you the best advice.
Aitken Financial Services are award winning mortgage advisers based in Edinburgh who specialise in helping First Time Buyers. Get in touch to book your FREE mortgage discovery call.
