Committing to a mortgage is a big commitment to make. For some homeowners having the security of knowing exactly how much you will be paying and for what term is very reassuring. You might be on a tight budget or just a worrier who likes to know exactly what your monthly outgoings will be. If you are one of these people then the best option for you is to get a fixed mortgage. This type of mortgage is the best choice if you want peace of mind. Even if there is a rise in interest rates then by fixing into a mortgage this will secure your monthly payments to the same amount whether there is a rise or fall. This type of mortgage will only be fixed for the term of the deal. After this period, your mortgage will usually transfer over to the banks or building societies standard variable rate which is usually a substantial amount more.
It is a different picture however if you are tied into a variable or discounted rate mortgage. These type of mortgages can be the most uncertain as they track the Bank of England’s standard variable rate. So if the bank of England put interest rates up, then your mortgage will follow this and as a result your mortgage payments will increase. You do on the other hand have the advantage of lower mortgage payments if interest rates go down.