The decision to get a variable or fixed rate loan depends entirely on your own circumstances and preferences.
A variable rate loan has a rate that can change – both upwards and downwards – at the lender’s discretion and therefore your required repayment amount can change – again either increase or decrease.
A fixed rate loan has a rate ‘locked’ in for a certain period (usually between 1-5 years) which gives you certainty of your repayments for that period. This clearly assists borrowers with budgeting and planning their finances with some certainty. Fixed rate loans will attract a ‘break cost’ if the contract is broken during the fixed period – this includes if the loan is paid out, refinanced to another lender or house is sold.
It is usually possible to split your loan so that you have both a variable and fixed portion if required.