Fixed Rate Mortgage

Guide to Fixed Rate Mortgages

A fixed rate mortgage offers borrowers a guarantee of what their mortgage repayments will be, set over a certain period of time. On the upside this allows those with a mortgage to budget for their mortgage payments. On the downside, you run the risk of mortgage rates falling below the level at which you've agreed your fixed rate deal - and this usually happens.

In the UK, most fixed mortgage rates are set for between one and ten years. Be aware that fixed rate deals often involve the borrower agreeing to a penalty charge if they decide to cash their mortgage in early. This charge often amounts up to six months interest.

Current Account Mortgages | Standard Variable Mortgages | Understanding Mortgages