Fixed Rate Mortgage
A Fixed rate mortgage remains fixed at a certain level of interest whatever happens to general interest rates. The rate is set for a specific period and this can be anywhere between one and twenty five years. There will almost always be early repayment charges associated with this type of mortgage during the initial period when the rate is fixed. Watch out also for any extended tie-ins which commit you to staying with the lender for long periods of time. You should be particularly careful if the tie-in period is longer than the fixed rate period. At the end of the initial fixed rate period the mortgage is likely to switch to the lenders variable rate which may mean that your payments increase and that you have to pay more than you have been used to depending on interest rate levels at the time.

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