Fixed Rate Mortgages

Secure your monthly payments with a fixed rate mortgage. Your interest rate stays the same for a set period, providing payment security and budgeting certainty.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

Fixed rate mortgages

What are Fixed Rate Mortgages?

Fixed rate mortgages lock your interest rate for a specific period, typically 2-5 years. This means your monthly payments remain the same throughout the fixed period, regardless of changes in the Bank of England base rate.

Rate Security

Your interest rate is locked in for the fixed period, protecting you from rate increases and providing payment certainty.

  • Rate stays the same
  • Protection from rate rises
  • Predictable payments

Fixed Periods

Choose from various fixed periods, typically 2, 3, 5, or 10 years, depending on your needs and market conditions.

  • 2-year fixed rates
  • 5-year fixed rates
  • 10-year fixed rates

Early Repayment Charges

Fixed rate mortgages typically have early repayment charges if you want to switch or pay off your mortgage early.

  • Charges for early repayment
  • Charges for switching
  • Usually 1-5% of loan amount

Benefits of Fixed Rate Mortgages

Fixed rate mortgages offer several advantages, particularly for those who value payment security and want to budget with certainty.

Payment Security

Your monthly payments remain exactly the same throughout the fixed period, making budgeting easier and more predictable.

Protection from Rate Rises

If interest rates increase, your payments stay the same, protecting you from higher monthly costs.

Easy Budgeting

Knowing exactly what you'll pay each month makes it easier to plan your finances and manage other expenses.

Peace of Mind

No need to worry about rate changes affecting your monthly budget or ability to make payments.

Considerations and Drawbacks

While fixed rate mortgages offer security, there are some potential drawbacks to consider before choosing this option.

Potential Disadvantages

Understanding the limitations helps you make an informed decision about whether fixed rates are right for you:

No Benefit from Rate Falls: If rates decrease, you won't benefit from lower payments
Early Repayment Charges: Costs if you want to switch or pay off early
Higher Initial Rates: Fixed rates may be higher than current variable rates
Limited Flexibility: Less flexibility compared to variable rate mortgages

Fixed Rate vs Variable

Fixed Rate:

Payment security

Budget certainty

Protection from rises

No benefit from falls

Early repayment charges

Variable Rate:

Benefit from rate falls

More flexibility

No early repayment charges

Risk of rate rises

Unpredictable payments

These figures are only illustrative. All mortgages are subject to the applicant(s) meeting the eligibility of the specific lender. An assessment of your needs will be confirmed before a recommendation can be made.

Choosing the Right Fixed Period

The length of your fixed rate period is an important decision that depends on your circumstances and market conditions.

2-Year Fixed

Good for those who want short-term security or expect to move or remortgage soon. Usually has the lowest rates but less long-term protection.

3-Year Fixed

A middle ground option offering reasonable security without committing to a very long period. Good balance of rate and flexibility.

5-Year Fixed

Offering good long-term security. Rates are usually competitive and provide significant payment protection.

10-Year Fixed

Maximum security for those who want long-term payment certainty. Rates may be higher but provide the most protection.

Consider Your Plans

Think about your future plans - if you might move, need to remortgage, or want flexibility, shorter fixed periods may be better.

Market Conditions

Consider current interest rate trends. If rates are low and expected to rise, longer fixed periods may be advantageous.

When to Choose Fixed Rate Mortgages

Fixed rate mortgages are ideal for certain situations and borrower types. Understanding when they make sense helps you make the right choice.

Budget-Conscious Borrowers

If you need to know exactly what you'll pay each month and want to avoid any payment surprises.

  • Predictable monthly payments
  • Easy to budget around
  • No payment surprises

Rising Rate Environment

When interest rates are expected to rise, fixing your rate protects you from future increases.

  • Protection from rate rises
  • Lock in current rates
  • Long-term security

Long-Term Homeowners

If you plan to stay in your home for several years and want payment stability.

  • Long-term payment security
  • No need for flexibility
  • Peace of mind

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