Fixed Rate Mortgages

Fixed rate mortgages, as the name suggests, have a fixed interest rate for a set period; usually 2, 3, or 5 years, but can be longer. Any changes to the Bank of England base rate will have no impact on your mortgage – your monthly payments will not change.

This can work in your favour if the Bank of England increase the interest rate, however, if they reduce the interest rate, you will not benefit from any potential savings.  

These types of mortgage are great if you want to have peace of mind knowing exactly what your monthly payment will be. However  these mortgages can be more expensive than a variable rate mortgages  You may also incur high penalties  if you want to leave your mortgage deal early.