A fixed rate can help you budget, because the interest rate you pay - and your monthly payment - will be fixed until a set date. This means you will know exactly how much you will need to pay each month. Here are some of the key points to take into account to help when looking at this type of rate.
Are you working with a tight budget? Will the stability of knowing your payment each month give you peace of mind? Would you like the protection from interest rate rises? Are you happy to not benefit if interest rates drop, but have payment stability instead? For how long would you want stability on your payments?The interest rate tracks the Bank of England bank rate at a set difference until a set date. Every time the bank rate changes, so will the payments on your mortgage. Here are some of the key points to take into account to help when looking at this type of rate.
Do you want to benefit from interest rate drops which will bring your monthly payment down? Do you have spare income if rate increases make your monthly payment higher? Are you confident if interest rates rise, and your monthly payments increase this will not effect any future plans? The interest rate you see is the tracked rate at the time of taking out the mortgage and could move up or down 