Fixed Rate Mortgage
The lender will fix the interest rate that they charge at a set level for a fixed period of time. There are normally a whole range of fixed rate products available from different lenders and these vary in terms from very short periods (3-6 months) up to the whole 25 year mortgage term.
The lender may charge early redemption penalties if the mortgage is redeemed within the fixed rate period and often beyond the initial period (See Redemption Penalties). Back to Glossary
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