Fixed Rate
With a fixed-rate deal you agree at the outset to pay your mortgage lender a certain rate of interest for a certain number of years. If you want to get out of the deal early, you will usually face an early redemption charge.
The advantage: You know exactly what your mortgage payment will be each month, and even if interest rates generally rise, your costs won’t go up. This is ideal for people who wish to budget.
The disadvantage: If interest rates fall, you could be stuck on an uncompetitive rate for the remaining fixed period.
