Fixed-rate Mortgage
A fixed-rate mortgage keeps the same interest rate for an agreed period, commonly two to five years.
1 min read Buying a Home
What it means
A fixed-rate mortgage keeps the same interest rate for an agreed period, commonly two to five years. During that time, your monthly repayments stay the same even if wider interest rates change.
Example
You fix your mortgage at 4.2% for five years, so your repayments stay the same throughout that period.
Why it matters
Predictable repayments can make budgeting easier.
When your fixed period ends, you'll usually choose a new deal or move onto your lender's standard variable rate.
Can I leave a fixed-rate mortgage early?
Usually yes, but there may be an early repayment charge.