Fixed interest rate loans
- Give you more certainty and make it easier to budget because you know exactly what your repayments are for a set period of time.
- Protect you against interest rate rises, but if interest rates fall you miss out on the savings.
- Often have a higher rate than variable loans because you pay to ‘lock-in’ your rate.
- If you decide to change your financial institution, sell your home, or pay off your loan within the fixed period, you may be charged an early payout fee.