Now is not the time to be relying on stability in the economy to keep your mortgage payments constant. As we have seen, the Bank of England base rate recently fell to the lowest levels in recorded history, and there is a chance that it could rise just as steeply as the economy levels out again. Therefore a 15 year fixed rate mortgage is a good option if financial stability is a key priority of yours. As the name suggests, a 15 year fixed rate mortgage would remain at the same level over the whole of this period, after which it would revert to the lender’s standard variable rate (SVR).
As you are committing to be with your lender for a considerable amount of time, they will incentivise you by offering a competitive interest rate for this 15 year period. This makes the 15 year fixed rate mortgage one of the best deals in the market, in terms of overall savings. However, the obvious downside is that you would have less flexibility to move and make early repayments. A 15 year fixed rate mortgage is a legally binding agreement to be with the same mortgage provider for this time, and there are financial penalties if you wish to take out another mortgage elsewhere. However, when you come to the end of your 15 year fixed rate period, you are free to shop around and are under no obligation to accept the lender’s SVR.