What is a fixed rate?
A fixed rate mortgage provides the security of fixed mortgage repayments for a set period. It doesn’t matter what happens to interest rates. A fixed rate will not change whilst you’re on it, until the end of the initial period.
Like most mortgage products the greater your equity or deposit, the lower your Loan to Value (LTV), the better the interest rate may be.
How do my payments work??
The amount you repay each month will stay the same for the fixed term, regardless of what happens to interest rates.
We offer fixed rate mortgages over a range of periods, with many providers. It is not just about shopping for the best fixed rate, but also making sure the bank is a suitable lender for your situation.
Early repayment charge
Most fixed rates have an early repayment charge to exit early or if you exceed your overpayment allowance. You can normally make as many overpayments as you like within that year within the lenders allowance. If you exceed your annual overpayment allowance, the ERC will be charged on the amount you have repaid over the allowance.
What happens if I want to move house during a fixed rate period?
If you decide to move house during the fixed rate period, some fixed rates are portable. This means if you were to take a new mortgage on a new house with the same provider and they were to accept you as a new applicant at the time, normally subject to the same mortgage or more being taken. They may let you transfer the rate to the new mortgage, meaning the penalty (ERC) is not charged. It is always subject to their terms and conditions at the time.
We always recommend you call and book a chat with our experts to better understand if this type of rate is suitable for you and your situation.