A fixed rate mortgage is one in which the interest rate remains fixed throughout a previously agreed term.

This usually involves a two year or five year deal, but ten year fixed rate mortgages are not unheard of. It depends on the mortgage deal on offer and which lender is offering the mortgage.

At the end of the fixed rate period, the interest rates usually default to a variable rate based on the base rate of the lender. Each mortgage is different, and you need to check and see what will happen to any fixed rate mortgage you are thinking about getting after the fixed rate period runs out.

At the end of the fixed rate period, it is possible to then look into remortgaging, and possibly getting another fixed rate mortgage.

Advantages of a fixed rate mortgage

  • Budgeting – A fixed rate mortgage has the benefit of peace of mind. You know exactly what interest rate you will be paying and for how long. It helps with budgeting, and stops you being surprised by sudden increases in rates and outgoings.

Disadvantages of a fixed rate mortgage

  • Possible higher cost – Fixed rate mortgages may have a higher interest rate than the current market standards, making them possibly more expensive, albeit more stable, over time than variable rate mortgages.



House Price





Min (5% of house price)£2,500


Max (30% of house price)£15,000

Interest Rate





Min25 Years

30 Years

Max35 Years

Without Help to Buy

Your deposit£2,5005%
Your mortgage£47,50095%
Monthly Payment£213.30 

With Help to Buy

Your deposit£2,5005%
Help to Buy Loan£10,00020%
Your mortgage£37,50075%
Monthly Payment£168.39 

This calculator is provided to give you basic guidance only. This information is computer-generated and relies on certain assumptions. It has only been designed to give a useful general indication of costs. Its important you always get a specific quote from the lender and double-check the price yourself before acting on the information. We cannot accept responsibility for any errorsand recommend that you obtain exact figures from a specific lender before committing to any mortgage.