91�㽶��ɫ��Ƶ

With this type of mortgage, your interest rate and your monthly repayments are fixed for a set period, usually two, three, five or ten years. For example, your mortgage rate could be fixed at 2% for three years. 

The advantage of this is that you are sheltered from any interest rate rises and know exactly what your mortgage costs will be for the duration of the deal. For many people, this security and ability to plan is extremely valuable.

The downside of fixed-rate mortgages is that their interest rates are often higher than variable-rate options and if the rates fall you won’t benefit. There are also often early repayment fees, meaning you might be charged extra if you want to overpay your mortgage or if you need to get out of your deal early.

With a variable-rate mortgage, your interest rate and repayments can change month by month. Variable-rate deals often track another financial indicator, most commonly the Bank of England base rate. If the indicator goes down, your payments will drop, but if it rises then you have to pay more each month.

The advantage of this type of mortgage is that it usually starts off cheaper than a fixed-rate loan and when the base rate falls you often end up with a very good deal. 

However, the downsides are that you have less security and your payments could increase rapidly. You need to be sure you can afford the repayments if rates rise, so it’s important to do some calculations if you’re considering this sort of deal.