Mortgages & Money   Mortgage Guide

Fixed rate mortgages

With a fixed rate mortgage, the interest rate is fixed for a period of time - usually between two and five years, but the term can be as long as ten. During this period your repayments will be a set amount, after which your mortgage reverts to a Standard Variable Rate (SVR).

Pros:

  • Makes for easy budgeting
  • For the duration of the set period, you'll be protected from any interest rises

Cons:

  • If interest rates fall, you could miss out on repayment reductions
  • Some fixed rate mortgages require you to continue with the SVR for a period of time after the fixed term
  • Check for penalty clauses if you decide to change your mortgage after the fixed rate term

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