UK Fixed Rate Mortgage

The principle of a UK Fixed Rate Mortgage is that during the period of the fixed interest rate (usually between one and five years, but can be longer) the monthly repayments of a fixed rate mortgage do not change. At the end of the fixed interest rate period you are either charged the lenders standard variable rate, or the fixed interest rate may be revised for a further period.

In 2003 the UK Government indicated it was to talk to lenders about introducing long term fixed rate mortgage along similar lines to the 15 and 30 year period fixed rate mortgage products in America, so longer term fixed interest rate mortgages are available.

Benefits of a UK Fixed Rate Mortgage

With a UK Fixed Rate Mortgage there is no changes in monthly mortgage interest repayments during the fixed interest rate period, regardless of changes to the lenders standard variable interest rate.

With a UK Fixed Interest Rate Mortgage your monthly costs are known and predictable, making it easier for budgeting.

A choice of fixed interest rate period is available in the market place to suit your budgeting requirements.

Risks of a UK Fixed Rate Mortgage

If the standard variable interest rate falls below the fixed interest rate, you will be paying more than necessary until the end of the fixed period, making the mortgage more expensive.

For further advice and to talk to a mortgage adviser about arranging a UK Fixed Rate Mortgage just click on the enquiry button below, fill in brief details, and an adviser will call you within the next 24 hours.