What is a fixed interest period in a mortgage?
Besides selecting the appropriate form of mortgage, you also choose the period of fixed interest. This is very important, because interest is a substantial component of monthly rates. The best choice, in this case, depends on your individual needs and circumstances. There are various possibilities. The interest rate may be adjusted to current changes of interest rates or may be fixed for a certain period. Fixed interest periods fluctuate from one years to 30 years. The longer the fixed interest period, the greater the certainty you have with regard to your monthly rates. After the expiration of the fixed interest period, a new interest rate period and its form can be selected. Many people in the Netherlands prefer a 10-year period.