What is a fixed rate mortgage?

What is a fixed rate mortgage and how do they work?

A fixed rate mortgage enables you to fix your mortgage at a set interest rate for a specified period.

The main benefit of this type of mortgage is that you’ll know exactly how much your monthly repayments will be for the fixed rate period.

Unlike variable rate or tracker rate mortgages, fixed rate deals aren't tied to the Bank of England base rate. That means no matter what happens to interest rates during your fixed rate period, whether it be 2, 5 or even 10 or more years, your monthly payments will remain the same.

With a fixed rate mortgage, you'll pay the same amount every month for the duration of your fixed rate term. This can be a big help with monthly budgeting as you won’t suddenly see your monthly repayments increase if interest rates rise.

Want to know more? You can find out more about fixed rate mortgages here.