Whatever your financial needs, find a variety of Mortgage options online. Regardless of whether you want lower payments or the certainty of a fixed rate mortgage - all types of rates are available. Search for the UK’s biggest lenders, thousands of people have been helped to buy their first home or change mortgage lender. Everyone in the UK has different circumstances so we offer links to a range of mortgages for all kinds of customers. Fixed rates are one of the most popular types of mortgages on the market today.
What is a fixed rate mortgage?
A fixed rate mortgage makes it easy to plan ahead, because as the name suggests, the interest rate on your mortgage stays fixed. This means that as a fixed rate mortgage customer, even if the Bank of England Base Rate or the standard variable rate changes, the interest rate on your mortgage remains constant over a fixed period of time. This makes your budgeting easier, because you can plan ahead knowing exactly how much your monthly repayments will be. Most lenders offer a range of terms.
What are the benefits of a fixed rate mortgage?
Fixed rate mortgages can be good for first time buyers and anyone on a budget who needs the stability of a set monthly repayment. With a variable rate mortgage your payments go up and down according to the Bank of England Base Rate. However with a fixed rate mortgage you will know the exact amount you will repay each month, despite any changes in interest rates.
Having a UK fixed rate mortgage means the interest rate you will pay is set for a specified period. Fix your rate from 2, 3 , 5 or upwards. Once the fixed rate period is at an end, your repayments will revert to the standard variable rate.
With a fixed rate mortgage plan it is usually wise to keep your property for at least as long as the fixed rate term agreement because the early redemption penalty can be very high. However, some lenders will allow you to transfer your fixed rate over to your new property - check the loan conditions. Some policies have an overhanging policy agreement - this is where the early redemption policy still applies for a period after the fixed rate term is over. Make sure you read the small print so you don't get caught out. Choose from a range of loan products including a wide range of fixed rate self certification and buy to let mortgages with a range of terms available including 5 to 10 15 to 20 and 25 to 30 year terms. Rates for 20 year terms are lower than 30 and 15 is the same or less than 20. For the same loan amount, though, the shorter the term, the higher the monthly payment. That's because you're paying off the loan principal faster. The total interest you pay over the life of the loan falls as you pay off your mortgage faster. The starting interest rate on Fixed-Rate Mortgages is generally higher than Adjustable Rate Mortgages and Fixed/Adjustable Mortgages.