Fixed-rate mortgage
A fixed-rate mortgage has an interest rate that stays the same for an agreed period, so your monthly payments do not change during that time.
Also known as: fixed rate mortgage, fixed-rate, fixed rate
Common fixed periods are two, three and five years. A fixed rate gives certainty for budgeting but you will not benefit if rates fall, and leaving early usually triggers an early repayment charge.
When the fixed period ends, you normally move to the lender's standard variable rate unless you arrange a new deal.
An authorised mortgage adviser can explain how this applies to your circumstances, and MoneyHelper offers free guidance. Your home may be repossessed if you do not keep up repayments on your mortgage.
Related terms
This page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.