Fixed rate mortgage
In my last post I literally brushed over the basics of which mortgages were available and intended to go into more detail in my next post. I thought it over and remember that when I was researching which mortgage would be best for myself I always found it a chore to read big long posts so instead I shall write just one small post on each type to give you a quick oversight of the option.
What is a fixed rate mortgage?
A fixed mortgage is literally as simple as the name suggests, it has a fixed interest rate and runs for a fixed amount of time for example 2, 3 or 5 years. This means that your monthly mortgage payments will be the exact same amount each month until the mortgage expires.
If you like to keep a close eye on your monthly outgoings then this is the perfect solution, you can prepare and manage your money knowing the exact amount you will be spending each month.
So you may be thinking that a mortgage at a fixed rate is the perfect solution, unfortunately that is arguable. Anyone who watches the news or picks up a newspaper will know that mortgage rates can go down just as quickly as they go up, this means that you could end up continuing to pay your fixed rate while others on a variable rate are paying less because their mortgage rate has lowered.
I will talk in more detail about variable rate mortgages in my next post 
-Peter Patching
