A fixed rate mortgage gives you peace of mind for a specific period of time as your interest rate and mortgage payment are fixed i.e. they will not change during the agreed period or term.
Fixed rate mortgages are available for many different periods of time - two years, five years and ten years are typical examples but there are different fixed periods available including periods longer than ten years.
One disadvantage of fixed rate mortgages is that you will not benefit from any fall in interest rates during your fixed period and your payments will remain exactly the same. At the end of the fixed period your payments will generally revert to the lender's standard variable rate (SVR).
Fixed rate mortgages are very popular and are very suitable for people who want to know exactly how much they are going to be paying each month. They will also protect you against rising rates.
Fixed rate mortgages often have an early repayment charge which will vary from lender to lender. Normally, this only applies during the fixed period itself but some fixed rate mortgages do have repayment penalties beyond this period.
Select from the list below to find out more about the different types of mortgages or call us for a no obligation chat on 0800 066 5570.
Charcol is not authorised to offer investment advice. We recommend you seek professional advice with regard to these topics if you believe they may affect you.