This is the type of mortgage that gives us certainty.


We can fix or lock in an interest rate for a specific term. Terms can range from six months through to five years, and usually  depend on our perception of what interest rates might do over the term we choose.


If we think that longer term interest rates are going to fall we might fix our interest rate for a shorter term now, so that we can then re-fix when interest rates have in fact fallen. At that point we might choose to re-fix for a longer term unless we think that rates are going to fall even further.

Most lenders will allow some lump sum payments or increase in mortgage payments that relate to a fixed term mortgage, but there are restrictions and there can be significant penalties if we ignore them.

However with a fixed rate mortgage we have the certainty of knowing that if interest rates move up our payments are not affected until our fixed interest rate term expires.


Many people will have the major portion of their mortgage on a fixed interest term to give that certainty.

Spiral Staircase