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Your Questions: Should we opt for a fixed-rate mortgage or a variable rate?

Q. Is it true that fixed-rate mortgages are the way go at the moment for first-time buyers? My fiancé and I just got mortgage approval and we felt that we would be best sticking with a variable rate that would give us a bit of flexibility. However, friends of ours just said they got a five-year fixed rate of 2.45pc on a loan-to-value rate of 75pc with their lender, which was even better than the variable rates we have been considering.