Fixed-rate mortgages

What is a fixed-rate mortgage?

A fixed-rate mortgage is one where the interest rate won't change. A fixed rate means you'll pay the same amount every month for an agreed term. In most cases, you'll revert to the mortgage provider's standard variable rate (SVR) after this initial fixed-rate period.

Is a fixed-rate mortgage right for me?

A fixed-rate mortgage isn't right for everyone - it depends on your situation. Some people choose a fixed mortgage because it means nothing unexpected will happen. Whatever happens to the economy, the cost of their fixed mortgage can't go up.

True, they won't benefit from cuts to the Bank of England's base rate either - but at a time like this, when no-one really knows what the future holds, many people choose a fixed rate to bring some much-needed stability to their finances.

A fixed mortgage might appeal to you if:

  • You're playing safe. People with tracker and variable rate mortgages might benefit if the base rate goes down - but they need to be sure they can afford higher payments if it goes up. People with a fixed rate don't have to worry about this.
  • You have your doubts about the UK's economic future. If you're concerned about the base rate climbing - taking your mortgage payments up with it - a fixed mortgage is probably the best kind of mortgage for you.

For more information on fixed mortgages, talk to one of our expert advisers on freephone 0800 195 2913 - or click here and fill in the form, and someone will call at a time that suits you.

Mortgage advice

Not sure whether a fixed rate is the right way to go? Click here

Benefits of a fixed-rate mortgage

  • No surprises - fixed rate means fixed monthly payments
  • Simplifies financial planning
  • Ideal for people with tighter budgets
  • Offers protection against problems in the banking world

Drawbacks of a fixed-rate mortgage

  • No benefit from base rate drops
  • Early repayment charge usually applies during fixed period
  • May attract arrangement fees


Looking for a new fixed-rate mortgage to replace your old mortgage? You could benefit from a lower interest rate, reduce your monthly payments, consolidate your debts, or free up cash that's tied up in your property.

Mortgage term - short or long?

A lot of mortgages last for 25 years, but you might prefer a 15-year mortgage, or a 40-year one.


  • A shorter repayment period means you'll pay more each month, but pay less in total (as you won't be paying interest on your fixed mortgage for as long). It also means you'll own the property sooner - which means no more mortgage payments at all!
  • A longer repayment period means you'll pay less each month, but pay more in total (as you'll be paying interest on the loan for longer).

Many people choose to start with a long repayment term, which can bring their monthly payments down to a level they can afford when they're young. Once they can afford to make higher monthly payments, they then switch to a new mortgage with a shorter term.

Remember: starting with a fixed rate doesn't mean you're stuck with it. You might change your mortgage multiple times, so you might end up paying a fixed rate, a tracker rate and a variable rate before you own the property outright!

Why not try our Mortgage calculator?

Calculating your monthly mortgage payments is simple.
How much might your fixed-rate mortgage cost?

Repayment or interest only?

Any kind of mortgage (whether variable, tracker or fixed mortgage) can be either repayment or interest only.

  • With an interest-only fixed-rate mortgage, your monthly payments will pay off just the interest - they won't reduce the actual capital you owe. This means your payments will be lower, but you'll still owe the full cost of the property at the end of your mortgage. In other words, you'll need to make sure you've saved enough money (through savings or investments) to pay that back at the end of your mortgage term.
  • With a repayment fixed-rate mortgage, every monthly payment pays off some of the interest you owe on the mortgage, and some of the capital you owe. It's more expensive every month than an interest-only mortgage, but at the end of the mortgage, the house is paid for.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. DEBT CONSOLIDATION MAY INCREASE THE AMOUNT TO BE REPAID IN THE LONG TERM. Subject to status. An arrangement fee of 495 is payable on completion. For debt consolidation mortgages the fee is 1.5% of total advance (minimum 1295, maximum 1,695). No fee for returning customers. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. Calls may be recorded.

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