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Fixed Rate Mortgages

Fixed rate mortgages are very popular in the UK. As the name suggests, they allow you to fix the rate of interest you will pay on your mortgage for an agreed period. Most UK mortgage lenders offer a range of fixed rate mortgages. The most popular fixed rate mortgages are 2 year, 3 year and 5 year deals, but it is possible to get a fixed rate mortgage for anything from 6 months to 25 years.

As a rule, the longer you fix your rate for, the higher the interest rate you can expect to pay. However, as this market is so competitive, 2, 3 and 5 year deals are sometimes available at very similar interest rates.
Pros and cons of fixed rate mortgages

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Pros and cons of fixed rate mortgages


Benefits of fixed rate mortgages:

They protect you against rising interest rates.

Regardless of what happens in the economy and how Bank Rate moves, the interest rate you are charged is guaranteed to remain the same for the period of time you have signed up for.

They give you peace of mind, as you know exactly how much will be coming out of your bank account
every month with a fixed rate mortgage. This in turn can help you with your budgeting.

Disadvantages of fixed rate mortgages:

Should interest rates fall during your fixed rate period, you will not get the benefit and may feel you are paying over the odds.

Fixed rate mortgages come with a fee. Fees have gone up rapidly in recent years. Don't be surprised to be charged £500 to £1,000 for a fixed rate mortgage.

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With over 21 years of industry expertise, you can trust Your Mortgage to bring you breaking industry news, as well as expert tips and advice on every aspect of mortgages in the UK.
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