Our mortgage comparison service lists products from featured lenders with whom we have a direct commercial arrangement with. The mortgage data above was supplied by Moneyfacts Group plc and is updated at the time of mortgage search. The figures and data provided in our tables are for illustration purposes only. While we make every effort to ensure the accuracy of this data you should always confirm the terms on offer with the provider/broker. We do not give any financial advice.
A fixed rate mortgage has all kind of benefits. By agreeing the interest rate that you'll pay for a set length of time, you'll be able to plan your finances better and sleep safe in the knowledge that your payments aren't about to go through the roof.
What's more, fixed rates are often used by the bank as a tempter to get your business, with lower rates available than what's on offer with variable interest deals.
The downside, in the vast majority of cases, is that you won't be able to move your mortgage to another lender during your agreed period without incurring a hefty penalty.
The interest rate, the length of the term and the arrangement fee that you have to pay on agreeing the mortgage should all be central in your considerations. If you get a low interest rate but pay a high fee upfront, it could work out more expensive than choosing a slightly higher rate.
The APR or overall cost of comparison figure alongside the fixed rate is an indication of what you'll pay over the whole length of the mortgage. It takes into account the variable rate that the mortgage reverts to after the fixed term ends and any fees that you have to pay.
Fixed terms can range from anywhere between one and five years.
Remember, you face the possibility of paying another arrangement fee every time you agree a new deal. Keep this in mind if you're tempted by a low rate over a short length of time.