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28 May 2024
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Fixed Rate Mortgages Explained

What is a Fixed Rate Mortgage?

With a fixed rate mortgage the monthly repayment amount is fixed for a specified period irrespective of changes to the Bank of England's base rate or the lenders standard variable rate.

Fixed rate mortgage schemes generally last two to five years, although longer terms are available. At the end of the fixed rate the interest rate reverts to the lenders standard variable rate. A fee called an early redemption penalty would apply if you chose to cancel your fixed rate mortgage within the fixed rate period.

Cheapest Fixed Rate Mortgages

Some of the cheaper fixed rate mortgages may charge a redemption fee beyond the fixed rate period. This is called a 'tie in period'. When you compare fixed rate mortgages this factor needs to be considered, for details on the cheapest fixed rate mortgages simply click on the link above.

Flexible Fixed Rate Mortgages

There are now some mortgage lenders that offer fixed rates with the flexibility to make unlimited overpayments without being charged an early repayment fee. These flexible fixed rates would only incur an early repayment charge if the mortgage was redeemed in full. For further details on flexible fixed rate mortgages please complete our fee free mortgage advice form.

Advantages and Disadvantages of Fixed rate mortgages


  • Peace of mind that your mortgage payment will be safe guarded against increases in the lenders standard variable rate during the fixed rate period.
  • Budgeting is made easier as you will know exactly what you will be paying during the fixed rate period.
  • Lower interest rate in the first few years then the lenders standard variable.


  • Early redemption penalties can be onerous and expensive.
  • Extended tie in period could mean you paying a higher rate once the fixed rate has ended.
  •  The lenders standard variable rate may fall below the fixed rate.
  • You will normally have to pay an application fee when arranging your fixed rate mortgage.

Compare Fixed Rate Mortgages

There are many different fixed rate periods from 18 month fixed rates right up to 20 and 25 year fixed rates. By using Go Directs mortgage quote tool you can specify the fixed rate period and compare it with other terms to find a period that's right for you.

Do you want fee free fixed rate mortgage advice?

If you would like to speak to a mortgage advisor regarding fixed mortgage rates or remortgage schemes please complete our fixed rate mortgage advice form and a professional mortgage advisor will contact you to discuss you mortgage needs.

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We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £349

Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

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Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £349