Fixed Rate Mortgages
With a fixed-rate mortgage, the interest rate you pay remains the same for a set period, so your mortgage repayments will remain the same, even if interest rates rise. This type of mortgage is often available as a two, three, five or ten-year deal and provides peace of mind that your repayments will be the same for the duration of the fixed term.
If you choose a fixed-rate mortgage, you will need to think about arranging your next mortgage deal a few months before the current one ends, as when it does, you’ll be moved onto your lender’s Standard Variable Rate (SVR), which generally means you’ll be charged a higher rate.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.