Fixed Rate Mortgage

Questions frequently arise regarding the advantages and disadvantages of fixed rate mortgages. Sometimes the advice is straightforward and helpful, whilst at other times it can be misleading. An interesting article about fixed rate mortgages can be found at Fixed Rate Mortgage-Free Mortgage Advice. An extract from the article is reproduced below.

"As the name suggests, a fixed rate mortgage is an arrangement under which the sum borrowed is repaid over an agreed number of years, at a constant rate of interest, agreed at the time the mortgage loan is negotiated.

Many people prefer fixed rate mortgages because they are not subject to interest rate fluctuations, so they are better able to control their finances. Fixed rate mortgages enable people to plan ahead, without the possibility of rising interest rates creating hardship.

As with other types of mortgage, a fixed rate mortgage may run for differing terms, to suit the applicant. Loan terms of between 15 and 30 years are fairly common, and either could be suitable for particular circumstances. Obviously the monthly repayments would be higher for a fixed rate mortgage over the shorter term, but the total outlay would be considerably less than for a longer term deal. It is really a case of what you can best afford, in consideration of your present and future circumstances."

If you would like to read the full article please visit Fixed Rate Mortgage-Free Mortgage Advice.

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