Loan Types
Fixed rate loan
Fixed rate loans protect you against interest rate changes for an agreed time, so you have peace of mind knowing your repayments won't increase. These are typified by:-
- When interest rates rise, your repayments won't
- You won't benefit if rates go down during the fixed term.
- Reduced flexibility, ie if you pay it out later it could cost thousands
- Extra repayments can mean early repayment costs
A rate lock fee can be charged to fix a rate to the rate of the day when you applied for the loan before the loan settles, this can be a flat fee or a percentage of the loan Lower fees associated with this loan