It would be great if we could predict what the future holds with regards to the world of finance, however this is not the case. So in order to be able to plan your budget wisely it may be a good idea to look at a fixed rate mortgage for paying your house off. You are guaranteed that the mortgage rate will stay the same for a fixed period of time which could be anything from 1 year to 10 years or more. This means that whatever the interest rate does in that time it will not affect the amount of money that you pay on your mortgage each month.
The pros to a fixed rate mortgage:
The biggest pro to having a fixed rate mortgage would be in the event of you running to a tight budget. At least you can be guaranteed to be paying the same amount of money on your mortgage each month for a set period of time. If you are good at predicting the shift in interest rates it can also be a good idea to change to a fixed rate mortgage if you suspect that the rates will increase shortly. This could inevitably save you quite a bit of money over the months especially if you were on a variable rate mortgage which would increase with the interest rate increase.
So what are the cons to a fixed rate mortgage?
Basing this information on the last paragraph you cold also lose a lot of money on your mortgage if you predict the interest rates wrong. You could switch to a fixed rate and then find that that the rates decreased instead of increasing. This means that instead of paying less per month you would in fact pay more per month on your mortgage for a set period of time. Many fixed rate mortgages will have a higher interest rate than variable rates because of it being set for a certain length of time. There may even be clauses for early settlement fees if you decide that you want to change mortgage lenders.
You could spend all your free time watching the market and trying to predict which way it will swing and still manage to get it wrong. There is no iron clad guarantee that the fixed rate mortgage will end up cheaper than the variable rate mortgage at the end of the day.
The decision is entirely yours as to what mortgage you want to choose.