Mortgage Calculator

Fixed rate mortgage

The interest rate remains the same throughout the period of the deal – typically one to five years, though it is possible to get ten year fixed rates. If you opt for a fixed-rate, you’ll have the security of knowing exactly how much your mortgage will cost you for a set period of time. 

Advantages

Your mortgage payments will remain the same, even if interest rates changed. This makes it great for budgeting. 

Disadvantages

You are tied in for the length of the deal, so if interest rates fall you can’t take advantage of them. For example, if you opt for a five year fixed-rate deal, you will be tied in until the fixed term ends. If you want to get out of the mortgage before then, you’ll be charged a hefty penalty – often thousands of pounds.

So before you apply for a fixed rate mortgage, think about how long you are happy to be locked in for.