Predictable monthly payments: With a fixed-rate mortgage, your monthly payments are fixed, so you know exactly how much you will be paying each month. This can help you budget your finances and plan for the future.
Stability: A fixed-rate mortgage offers stability because you are protected against rising interest rates. If interest rates go up, your monthly payments will remain the same.
Potential to save money: If interest rates rise during the term of your fixed-rate mortgage, you could potentially save money compared to a variable-rate mortgage, which would increase your monthly payments as interest rates rise.
Can borrow more: Fixed-rate mortgages of 5 years or more allow lenders to potentially lend more than on a short-term fix or a variable-rate mortgage.
May offer lower rates: Fixed-rate mortgages may offer lower interest rates compared to variable-rate mortgages, especially if you lock in a rate during a period of low-interest rates.
Overall, a fixed-rate mortgage can offer stability and predictability, which can be especially useful if you are planning to stay in your home for a long time. However, it is important to consider the potential drawbacks of a fixed-rate mortgage, such as the possibility of missing out on lower interest rates if they become available after you have locked in a fixed rate and being tied into the lender, with potentially significant redemption penalties if you wished to pay off the loan early
At The Mortgage Branch, we are here to help you secure the most suitable mortgage for you, whatever your situation.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT