If the fixed-rate period for your mortgage is about to expire, the time has come to select a new interest rate and consider making any other changes to your mortgage. Three months before the end of your fixed-rate period, you will automatically receive a new interest offer. You can accept this new interest rate, but it would be much wiser to use it as an opportunity to take another critical look at your mortgage and consider your options.
When your fixed-rate period is about to end, you could take that opportunity to take a fresh look at the type of interest rate you have. Do you like the certainty of a fixed rate of interest? Or would you prefer a variable interest rate, which could be low, but could also change on a monthly basis?
It is fairly simple really, you can fix your interest rate for a short or a long period of time. When it comes to choosing a fixed-rate period, what matters is how long you want the certainty of knowing exactly how much you will be paying every month. As a rule of thumb, the longer the fixed-rate period, the higher the interest rate. On Internet Banking, you can see for yourself how much you would be paying every month with different fixed-rate periods.
Your personal situation and preferences may change. If they do, you can adapt your mortgage type accordingly. You could, for example, switch from an interest-only mortgage to an Level-Payment Mortgage or Straight-Line Mortgage. The end of your fixed-rate period can be the perfect opportunity to look into this.
