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. However, you won't benefit if rates go down during the fixed term.

Pros:

• When interest rates rise, your repayments won’t

Cons:

• Reduced flexibility
  
• Extra repayments can mean early repayment costs

Posted by karthika on Monday, July 16, 2007 at 2:59 AM | Permalink