Fixed
The rate stays the same for a set period, so your repayment stays the same during that time. Fixed loans often limit how much extra you can repay, and ending the loan early can carry a break cost.
Variable
The lender can change the rate, so your repayment can go up or down. Variable loans usually come with more flexibility, such as extra repayments and an offset account.
Split
You divide the loan, with one part fixed and the other variable. That gives you some of each. It also means keeping track of two sets of terms.
When a fixed term ends
Your loan usually moves to the lender's variable rate unless you choose a new fixed term. It is worth knowing the date, and looking at your options before it arrives.
What to think about
- How much of a rise in repayments your budget can take.
- Whether you want to make extra repayments.
- Whether you plan to sell or refinance in the next few years.
We do not predict where rates are heading, and nobody can. What we can do is look at your situation and set out how each option works for you. Contact Us. No obligation.