Newsletter:
Latest Rates
Fixed Rate Mortgages
Your interest rate and monthly repayments are fixed for a set time (1 to 10 years)
You CANNOT:
- overpay
- pay back lump sums
- redeem your mortgage early
- change the terms of your mortgage
without penalty.
Good for those who prefer to know what their mortgage repayments will be for a certain time.
If you worry that future interest rate increases will overstretch you then a fixed rate mortgage is for you.
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Variable Rate Mortgages
Lenders have full control over variable rates and can change them whenever they wish.
Unlike with a fixed rate mortgage you CAN:
- overpay
- pay back lump sums
- redeem your mortgage early
- change the terms of your mortgage
without penalty.
Good for those who are comfortable with their monthly repayments rising/falling over the duration of their loan and who wish to avail of the flexible repayment options outlined above.
Good for those who are happy to take the risks associated with fluctuation variable rates with the benefits listed above
If you want to pay down your mortgage early then a variable rate is for you.
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Split Rate Mortgages
This is where you put a portion of your mortgage on a fixed rate and the remainder on a variable rate
Best of both worlds
- The fixed part will give you the security of knowing the monthly repayments on this portion
- The variable part will allow you to pay it off more quickly without penalty.
If you want security and flexibility then a split mortgage is for you.
WARNINGS
-
The new loan may take longer to pay off than your previous loans. This means you may pay more than if you paid over a shorter term.
-
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT.
THE LENDER MAY ADJUST THE PAYMENT RATES ON A HOUSING LOAN FROM TIME TO TIME.
YOU MAY HAVE TO PAY CHARGES IF YOU PAY OFF A FIXED RATE LOAN EARLY. -
If you are considering an interest-only term, the entire amount that you have borrowed will still be outstanding.
