Fixed rate mortgages have a fixed interest rate. This means you’ll pay the same amount every month for the duration of the fixed term. At the end of the fixed term, your interest rate will revert to our Standard Variable Rate.
This means that your monthly repayments would be a fixed amount each month and wouldn’t increase within your fixed term deal.
Fixed rate mortgage deals can last between 1 and 15 years. There can be other lengths of fixed rate product terms on the market.
Your interest rate will stay the same for a set period of time, so you know exactly how much you will pay each month for this set period.
You won’t be affected by any fluctations in interest rate changes within the wider market for the duration of your fixed rate period. For example, if the Bank of England base rate increases your interest rate won’t increase. This can help with monthly budgeting.
As your rate will be fixed for a certain period of time, if rates were to decrease within the market, you will not benefit from any reduction to your fixed interest rate.
Early repayment charges may be incurred if you pay more than the overpayment allowance allowed on your mortgage or fully redeem your mortgage account during the fixed rate product term.
At the end of your fixed rate period, you will revert onto a standard variable rate (SVR), unless you have made arrangements for a new mortgage deal at the end of your fixed rate. It’s important to review remortgaging options before you are transferred onto the SVR.
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