What is the intended benefit of choosing a fixed-rate mortgage for a first-time buyer?

• A. Greater flexibility to redraw
• B. Stable repayments during the fixed period
• C. Lower initial payments
• D. Access to mortgage protection tax relief

Answer: (B)

The main idea is that fixed-rate loans provide payment stability. Locking in the interest rate for a set period means your monthly repayments stay the same during that time, so a first-time buyer can budget reliably and avoid payment shocks if interest rates rise. After the fixed period ends, payments may change with the market, so you’ll need to plan for that possibility or consider refinancing. The other options aren’t the primary benefit of fixing the rate: redraw flexibility, lower initial payments, and mortgage protection tax relief aren’t guaranteed or inherent advantages of a fixed-rate loan.