Fixed Rate

Did you ever play stuck in the mud as a kid?

It is not complicated!

The interest rate is fixed for a set amount of time and is not affected by the Bank of England and how it affects the fluctuations in the market

You will be locked into a set rate for a set period

If you leave, you will be required to pay an exit fee

The fixed rate period (IRP) is first two, three or five years of the term.  You will have a structure set rate over these time period.  This ends when the fixed term ends.


Fixed rate mortgages are great for first time buyers who are budgeting for the first few years

Fixed rate mortgages provide security

Fixed rate mortgages are great for budgeting

Fixed rate mortgages are great for homeowners who want to lock into a base rate, if they suspect the rate will rise

Fact:  When you take out an interest only mortgage you can lock in your mortgage interest rate which is super if you suspect The Bank of England base rate will increase!!


Once you are locked in, it’s difficult to switch due to the hefty penalty you will incur.  You will also not benefit from a fall in interest rates

Fact:  When you come to the end of the fixed rate period, you get switched to your mortgage lenders variable rate, which is going to be higher mostly.  Most people at this point opt to remortgage to get a better deal.