Which Mortgage is Best For You?

The first choice you will need to make when choosing a mortgage is whether you want a Fixed Rate or Variable Rate mortgage. We've made a brief comparison below but you may wish to discuss the mortgage options in more detail by calling in to one of our branches. Our staff are there to help and guide you.

A Fixed Rate mortgage offers an interest rate which is fixed for a set period of time. At the end of this period the rate will revert to the variable rate which is current, although you will normally be offered a further fixed rate option.

With a Variable Rate mortgage, the interest charged will alter from time to time. So when interest rates rise, the interest charged will increase, but become less when interest rates fall.

Each type of mortgage has benefits and restrictions you should consider, as shown below.

Mortgage Loan

Fixed Rate	Benefits	Considerations
	Protects you against interest rate changes.	Reduced flexibility. If you want to pay off your mortgage early there will normally be a fee.
	Choice of fixed rate periods to choose from.	Not so beneficial in times of declining interest rates.
	Helps you to budget more easily.

Mortgage Loan

Variable Rate	Benefits	Considerations
	Very flexible.	Less easy to budget as interest rates will change.
	You can make lump sum payments each year to reduce your interest payments.	If interest rates rise, your mortgage payments are also likely to rise.
	Mortgage payments will fall if interest rates fall.