A fixed rate mortgage allows the borrower to enter into fixing the repayment amount on their mortgage for a set amount of time. This period of time typically ranges from 1 year up to 10 years.
The distinguishing factor of a fixed rate mortgage is that the interest rate of the mortgage is known at the outset and therefore an individual is able to budget for these repayments for the period of time that the fixed rate applies for.
There are pros and cons to a fixed mortgage and its important to realise all the facts before entering into any agreement.
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