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A Guide to Fixed Rate Mortgages

Fixed rate mortgages guide

Fixed rate mortgage loans are the most common product on the UK mortgage market, with the vast majority of first-time buyers and mortgage borrowers seeking the reliability of a fixed-rate loan.

When you choose a fixed rate mortgage the amount you pay every month will be fixed for a specified period of time, whatever happens to the Bank of England base rate and the standard variable rate offered by your mortgage lender.

Browse fixed-rate mortgage offers

Browse fixed rate mortgage offers on the market and enquire instantly online. To browse all types of mortgage offers, see our mortgage offers section.

Lender Initial Rate Duration Standard Rate Overall Cost For Comparison Max Loan To Value Fee
  • Santander Direct Trackers

1.95% 2 years 4.24% 4% APR 60% £1,995
  • Chelsea BS 70% LTV

1.99% To Dec 2013 5.79% 5.4% APR 70% £1,495
  • Yorkshire BS

2.29% To Nov 2013 4.99% 4.7% APR 75% £995
  • Skipton BS Remortgage Tracker

2.38% 2 years 4.95% 4.8% APR 60% £995
  • ING Direct

2.44% 2 years 3.5% 3.5% APR 75% £445
  • Market Harborough BS

2.48% 2 years 5.49% 5% APR 75% £845
  • ING Direct

2.55% term 3.5% 2.5% APR 60% £945
  • Nationwide BS Remortgage Trackers

2.69% 3 years 3.99% 3.8% APR 70% £999
  • First Direct Repayment BRT Fee Free

3.19% Term 3.69% 3.2% APR 75% Nil
  • Woolwich (Barclays) Tracker

3.19% Term 3.89% 2.6% APR 70% £999

What types of fixed-rate mortgages are on the market?

There are a massive variety of fixed-rate mortgage loans on the market. This type of loan generally lasts for between two and five years, however, 10-year fixed-rate mortgages and even 25-year fixed-rate mortgages are becoming more common.

What happens when the fixed-rate mortgage term expires?

When a mortgage borrower reaches the end of their fixed-rate term, the interest rate on their loan reverts to the standard variable rate offered by the lender. This is generally considerably higher than the fixed-rate deal offered.

What happens if I want to remortgage before my fixed-rate mortgage term expires?

Usually in this instance lenders will charge something called an early repayment penalty if you wish to cancel your fixed-rate mortgage within the fixed period and transfer to another loan. Some cheaper fixed-rate mortgages, including some of the best fixed-rate deals on the market, will continue to charge an early repayment fee even beyond the fixed-rate period. This is known as a 'tie-in period', and borrowers need to be aware of it when they take out a fixed-rate mortgage.

Are some fixed-rate mortgages flexible?

Flexibility is a prized aspect of any mortgage loan, and some fixed rate mortgage lenders now offer deals with flexibility attached. This includes the ability to make unlimited overpayment with no charges.

What are the major advantages of fixed-rate mortgages?

Fixed-rate mortgages give buyers stability and peace of mind. Any increases in base rate, and consequent adjustments to lender SVR, will be protected against by the terms of the loan. This allows borrowers to budget for payments.

What are the major disadvantages of fixed-rate mortgages?

The major problems with fixed-rate mortgages are early redemption penalties and extended tie-in periods. In a climate of falling interest rates, the lender's SVR could go below the fixed rate, leaving you paying over the odds. Fixed-rate mortgages generally require an application fee to set up.

How do I find a fixed-rate mortgage?

For more information about fixed-rate mortgage loans and to get a fixed-rate mortgage loan quote, please use our Mortgage Enquiry Form and one of our experts will contact you for further assistance. Alternatively, you can give us a call on .

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