Second Mortgage

5 year fixed rate means the fixed rate of interest on the capital loan of the total.

After five years the interest rate will resume to the normal variable rate.

The type of mortgage taken depends on many factors like the intent of the buyers for the house. Are they planning to sell it or stay on it long term.

Are you salaried people? Is your salary expected to go up from year to year to cover the expected rise of the mortgage payment once the 5 year term expires?

Whether its a good rate depends on whether you can find another lender who will offer a lower interest rate. So always remember to sop around. there can be wide differences among lenders and you might save some money there.

Five year fixed is that your interest rate wont rise in 5 years. First time buyers  frequently move or sell within 5 years, so the savings on a loan with only a 5 yr fixed rate versus a loan that is fixed for 30 years at the start may be useful.

The con is that if they decide not to move or sell within 5 years, they have the risk that interest rates will be higher when the loan resets, or they refinance their loan.

Five years fixed is good if he wants stability by that mean if he wants to know what he will pay every month for the next five years.the problem is he will have a penalty charge if he finishes the contract early.this can be very exspensive ask the morgage lender how much, it is its normally thousands. 

Alliance and lester, and nationwide are doing really good deals especially if you have 10% of what you want to borrow your son would need 15200. Definatly go to a independant morgage advisor they will find you the best deal and its free advice.i dont recommend above a 3 year fixed.