What is a Fixed Term Mortgage

A mortgage is a loan for the purchase of property and the loan is secured against the property. A fixed term mortgage is simply put a mortgage that is set for a fixed period of time, Interest rate charges are fixed for the term of the mortgage. A penalty could be applied if the term is broken before maturity. This kind of mortgage has the advantage of the owner always knowing what their repayments are, there is no fluctuation.

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