Helping you understand if a fixed rate mortgage is right for you

Fixed rate

What is a fixed rate mortgage?

A fixed rate mortgage means your repayments have a fixed interest rate.

This means that you’ll pay off the same amount every month, for the length of your introductory deal, usually two to five years.

When the fixed rate period ends, your rate will change to the lenders standard variable rate (SVR).

Benefits of a fixed rate mortgage

You’ll know exactly how much your mortgage will cost each month

Your payments won’t increase even when your lender’s SVR goes up. However, they may increase at the end of the fixed period.

It’s easier to budget each month when you know what you’re paying

Please be aware that if your lender's mortgage rates fall, you'll still be tied into your fixed rate mortgage until the introductory rate ends.

An Early Repayment Charge (ERC) can be paid in order to exit your current deal and find a new rate.

What happens when my fixed rate mortgage ends?

After the fixed period ends, your mortgage interest rate switches to the Standard Variable Rate (SVR), which means your rate could both rise or fall, depending on changes in the interest rate we charge.

At this point, if you don’t want your mortgage to be on the SVR, you'll have the option to remortgage and move onto a new rate.

Do not worry, we will contact you before your fixed rate ends so that you can make arrangements.

For more information on the SVR, take a look at our SVR mortgage guide.

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