Fixed rate products are gaining popularity at the moment due to the recent drop in interest rates. The interest rate is fixed for a specified period, which can be between six months and ten years. This loan gives you the certainty of knowing what your monthly repayments will be and peace of mind knowing the repayments won’t rise, however you won’t benefit if rates go down.

Advantages:

• Certainty of repayments – if interest rates rise your repayments won’t.
• The interest rate is generally cheaper than more flexible products.

Disadvantages:

• Reduced flexibility.
• Extra repayments are limited or may incur additional costs.