A fixed rate mortgage is a mortgage loan in which the interest rate remains the same or is ‘fixed’ throughout the term of the loan.
The Molo way
We offer fixed rate products for either 2, 3 or 5 years and we make sure your product lasts for as long as you would expect it to. We don’t apply ‘fixed end dates’ specifying when your mortgage deal will end before your mortgage has been completed.
For example, should your purchase or remortgage process take longer to complete than you’d planned, you’ll still benefit from the full term of your chosen product. If you choose a 2-year fixed rate, you will benefit from the full 24 months of your deal beginning from the date your mortgage completes.
Pros and cons
Choosing a fixed rate gives you certainty that your monthly payments will not change during that period. This helps you to budget effectively and means your payments will not change if the general interest rates in the market increase. However, your payments will also not decrease if general interest rates fall.
You have the right to repay your mortgage in full before the end of any fixed rate deal, but be aware that this may result in Early Repayment Charges which are standard practice across the industry.