Fixed interest rates are a hot topic right now, due to the recent drop in interest rates. There are now options to fix their interest rate lower than the variable rate on offer from the bank.
This product allows you to set a rate on your loan for a period of 1 – 5 years. This will be of great benefit to anyone wanting to take advantage of the low interest rates and would like to have set repayments on their loan for 1 -5 years. It is important to remember that you don’t have to fix the whole loan, your loan can be split into fixed and variable loans providing you with greater flexibility with one part of the loan and set repayments with the other.
Once a fixed rate is locked in, your repayments will be set for the term that you choose. It is important to understand, however that each lender has different rules and guidelines for how a fixed rate works and what you can and can’t do as part of this loan. Be sure to speak to me before you fix your interest rate to understand exactly what you’re signing up for.