Buying guide
Fixed, floating or split mortgage?
Understand your options
6 December 2023
AI summary
Choosing the right mortgage structure is crucial. A fixed rate mortgage provides payment certainty for a set term but limits extra repayments and can have break fees. In contrast, a floating rate loan offers flexibility for lump sum payments, but your repayments can rise unexpectedly.
A popular strategy is a split mortgage, which combines both types to balance security with flexibility. This allows you to tailor your loan structure to your financial goals. Seeking personalised advice from a mortgage adviser is highly recommended.
How does a fixed mortgage work?
Choosing a fixed rate term
There may be some repayment flexibility with a fixed mortgage
How does a floating mortgage work?
Why do floating rates change?
What are the different types of mortgages?
Examples of possible mortgage structures
Getting experienced advice
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