Fixed Rate Mortgages

A Fixed Rate Mortgage has a set interest rate a specific term reguardless of whether the base rate is going up or down.

This set interest rate means you will always pay a set amount each month, which means you will know how much you are paying on your outgoings. If the base rate rises your interest will not, it will stay the same, however if the base rate falls you will not benefit as you will still be paying your fixed rate.

What are the benefits of a fixed rate mortgage?

Fixed rate mortgages can be good for first time buyers or anyone on a budget who needs the stability of a set monthly repayment. With a variable rate mortgage your payments may go up and down according to the Bank of England Base Rate. However with a fixed rate mortgage you have the security of knowing the exact amount you will repay each month, despite any changes in interest rates.

You can fix the rate for up to five years, however you may prefer to fix for two or three years.

Once the fixed rate period is at an end, your repayments will revert to the standard variable rate unless you shop around for another deal.

What are the disadvantages of fixed rate mortgages?

Some Fixed Rate Mortgages may have a lock-in clause and redemption penalties are often charged if you try to leave the mortgage within the fixed rate term.

At PeopleFinance.co.uk we can help you find a Fixed Rate Mortgage, an independent financial processor will aim to get you the best deal to match your credit circumstances.

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Related glossary terms to Fixed Rate Mortgages:
Adverse Credit | Flexible Mortgages | Capped Rate Mortgages | Discounted Mortgages | Bank of England Base Rate | Mortgage Term

Related Fixed Rate Mortgage Products:
Fixed Rate Remortgage | Fixed Interest Rate Mortgage | Fixed Rate Mortgage | Fixed Rate Self Cert Mortgage