Fixed rate mortgage deals

A fixed rate mortgage is a mortgage where your interest rate doesn’t change for a set number of years. This means your monthly repayments stay the same during that time too, giving you stability and helping you budget.

Fixed rate terms are often between two and five years, depending on who you're getting a mortgage with and the products available.

Shorter terms offer more flexibility, allowing you to switch your deal and potentially take advantage of lower rates sooner. Whereas, longer terms offer an extended period of stability, protecting you from changes in your monthly payments if interest rates rise in that time.

It all depends on your personal circumstances. As with any type of mortgage, there are pros and cons but here are the key things to know about fixed rate mortgages:

• You’ll know exactly how much your monthly repayments will be each month for a set number of years, which can be handy for managing your money.
• You can pick between short or longer term deals to suit your future plans.
• If interest rates go up, your payments won't change. But if interest rates go down, you won't benefit from a lower rate.
• You may have to pay a fee if you want to exit your fixed rate deal early.

Yes, you can usually leave your fixed rate mortgage early. But bear in mind, this may mean you need to pay an early repayment charge. Before you decide, it’s worth speaking to your lender to help understand your options and any costs involved.

When your fixed rate deal ends, you can choose to switch to a new mortgage deal. Depending on what’s available at the time, you can pick a new fixed rate deal for certainty in your monthly payments again or explore other options.

If you don’t choose a new deal before your fixed rate deal ends, you’ll automatically move onto a Standard Variable Rate (SVR). SVR isn’t generally the cheapest way to repay your mortgage and it can change at any time, unlike a fixed rate mortgage, so it’s good to review your options before your fixed rate ends.