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Have Questions? We’ve Got Answers!

Discover everything you need to know about mortgages. From understanding rates to finding the right plan, our FAQ section is here to guide you every step of the way.

What is the difference between a fixed rate and a variable rate?

A fixed rate mortgage is where the rate of interest you pay on your mortgage is kept the same (fixed) for a certain period of time, which is generally between 1-5 years. Once the fixed rate period has ended, in most cases you are then moved onto a reversion rate.

Variable rate mortgages are when the rate of interest you pay is linked to 1, 3, or 6 month EIBOR with a fixed percentage added by the bank. This means the rate you pay can go up or down over time, depending on EIBOR. For example, if in month 1 EIBOR is 2.5% and the fixed margin your bank applies is 1.49%, then the variable rate you will pay is 3.99%. If in month 6 EIBOR has increased to 3.5% then your variable rate will change to 4.99%.

You can read more about the difference between fixed rate and variable rate mortgages, as well as the advantages and disadvantages of each in our blog article here.

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