Here’s an overview of what fixed rate mortgages are & how they work:
Locked-in interest rate: The interest rate you pay on a fixed rate mortgage is fixed for the duration of your mortgage deal. It will stay the same even if the Bank of England base rate changes.
Choice of term length: Usually 2, 3, 5 or 10 years
Helps budgeting which can be especially useful for first time buyers
Most popular mortgage type in UK 85% of mortgages are fixed rate mortgages, UK Finance figures show
But you won’t benefit from falling interest rates and will usually pay an early repayment charge to leave the deal early.
Once your term ends you’ll move onto your lender’s standard variable rate unless you remortgage.
What is a fixed rate mortgage?
A fixed rate mortgage is a home loan where the interest rate and monthly payments stay the same for a set period, usually 2, 3, 5 or 10 years.
Fixed rate mortgages offer stability because the rate you’ll pay will remain the same even if the Bank of England base rate changes.
Once your fixed rate period ends, you’ll usually switch to your lender’s standard variable rate (SVR) unless you remortgage to a new deal.
Pros and cons of fixed rate mortgage deals
Pros
Budgeting certainty: Your payments are predictable which helps with managing your household finances.
Security: You don’t need to worry about your mortgage payments going up, such as if interest rates rise.
Lower mortgage rates: The best mortgage rates currently are for fixed rate mortgages, rather than variable rate mortgages.
Cons
Missed savings: While your mortgage payments won’t increase if interest rates rise, they won’t go down if interest rates fall.
Less flexibility: You will usually need to pay an early repayment charge to leave a fixed rate mortgage. These are typically a percentage of the outstanding balance on your mortgage.
When you’re weighing up whether to take out a fixed rate mortgage you’ll need to consider the alternative – a variable rate mortgage. There are two main kinds when taking out a mortgage:
Tracker mortgages: The rate you’ll pay on a tracker mortgage will go up and down in line with the Bank of England base rate. It may have a tracker floor, which is a limit on how low your mortgage rate can go. This is also known as an interest-rate collar. For example, the tracker floor could be set at 1% or 2%. Some tracker mortgages include a cap – this means there’s a limit on the interest rate you’ll pay on your mortgage.
Discounted variable rate mortgages: These track under the lender’s standard variable rate. So your rate may go up or down, depending on any changes the lender makes to its standard variable rate.
You can also get standard variable rate mortgages, but this is the deal you’ll usually roll onto when your current mortgage deal ends if you won’t remortgage. The lender sets the amount you pay and these are notoriously expensive.
Fixed rate vs variable rate mortgages compared
Feature
Fixed rate mortgage deals
Variable rate mortgage (inc trackers)
Monthly payments
Payments are fixed and do not change
Payments can rise and fall in line with a market rate, like the Bank of England base rate
Interest rate
Will stay the same
May increase or decrease
Flexibility
Usually have early repayment charge if you leave the deal early
Yes, you can get interest-only fixed rate mortgages. However, interest-only mortgage payments only cover the interest charged on the mortgage – not any of the original amount you borrow. This means you’ll still owe the original amount you borrowed at the end of the term.
Lenders often require a high minimum salary for interest-only mortgages. For example, NatWest requires a minimum income of £75,000 or joint combined income of £100,000. You’ll usually need a bigger deposit or amount of equity in your home. Plus, lenders will want to see evidence of how you’ll pay off the loan at the end of the term. So if you’re considering an interest-only mortgage, make sure you get expert mortgage advice.
When your fixed rate mortgage ends you’ll usually move onto your lender’s standard variable rate. This rate is set by your lender and can be very expensive.
You can avoid this by remortgaging onto a new deal with your existing lender or a new one. You can start the remortgage process up to 6 months before your current mortgage deal ends. Find more in our guide on How to remortgage.
Can I make overpayments on fixed rate mortgages?
Yes – most fixed rate mortgages let you make overpayments, usually up to 10% of your outstanding balance per year. Some lenders may allow more, but not all mortgages include this feature.
Why overpay? Overpaying reduces your balance quicker and saves you interest.
Limits: However, if you go over the annual allowance, you may face an early repayment charge.
Tip: Check your mortgage terms before making overpayments or speak to your lender/broker to confirm how much you can overpay penalty-free.
Can I get a fixed rate offset mortgage?
An offset mortgage is a type of mortgage that allows you to reduce the amount of interest you pay by ‘offsetting’ your savings against your mortgage balance.
The mortgage amount you’ll pay interest on will be your mortgage balance, minus the amount in your savings account. You can get fixed and variable rate offset mortgages. Read more in our guide Offset mortgages explained
What does APRC mean?
APRC stands for Annual Percentage Rate of Charge and shows, as a percentage, the annual cost of a mortgage over its lifetime. It incorporates all relevant charges (including fees) that relate to the mortgage borrowing. This is useful when comparing the best mortgage rates.
Source: L&C. 3 October 2025. Figures based on £200,000 repayment mortgage over 30 years. Find more about our rates data here
Best 5 year fixed rate mortgages
Lender
Rate/ Fees
Monthly payment
APRC
Annual Cost
Santander (Purchase)
3.97%
£951
5.7%
£11,566
Halifax (Purchase)
3.97% (£1,099)
£951
6.1%
£11,636
Halifax (Remortgage)
3.86% (£1,558)
£939
7.0%
£18,456
Source: L&C. 3 October 2025. Figures based on £200,000 repayment mortgage over 30 years. Find more about our rates data here
But when you’re looking for the best mortgage deals you’ll need to factor in any fees so that you can calculate which is the best mortgage deal overall. A fee-free broker can do this for you.
Compare mortgage rates
How long should I fix my mortgage for?
If you’ve decided a fixed rate mortgage is right for you, the next step is to work out how long to fix for.
2 year vs 5 year fixed rate mortgage
Taking out a shorter deal means if mortgage rates improve you can move onto a cheaper deal
However, if mortgage rates get more expensive in the future you risk paying more overall.
Plus, you may pay more in remortgaging costs by taking out a new deal every 2 years rather than every 5.
If you’re looking for a middle ground, a 3 year fixed rate mortgage may be worth considering.
The advantages of fixing for 10 years or longer are that you’ll have the security of knowing how much you’ll pay on your mortgage for a longer period. Plus, you’ll usually pay less in arrangement fees than if you take out multiple 2 or 5 year mortgages.
Fixing your mortgage for 10 years or longer also protects you against changes to lending criteria; if a lender tightens up its lending criteria it may make it harder for you to get a mortgage.
However, fixing your mortgage for such a long time means you’ll run the risk of potentially missing out on better deals.
Also consider what would happen if you move house? Some mortgage deals are portable which means you can take them with you penalty free if you move to another property. So make sure you check the small print.
Can you get 30 year fixed rate mortgages?
30 year fixed rate mortgages are much less common in the UK than in the US or Europe but there are some available.
Can I take my fixed rate mortgage with me if I move house?
Yes – many lenders allow you to ‘port your mortgage‘. This means you transfer your existing fixed rate mortgage to a new property, keeping the same rate and features.
Why port? It helps you avoid paying costly early repayment charges if you move during your fixed deal.
How it works: Porting is treated as a new mortgage application – you’ll need to pass affordability and credit checks again.
Drawbacks: You may not qualify under current lending criteria, and if you’re buying a more expensive property your lender might not agree to increase the loan.
Try our fixed rate mortgage calculator to compare monthly payments across different terms.
Fixed rate mortgage eligibility and lender criteria
How much you can borrow on a fixed rate mortgage and lender criteria is based on these criteria:
1. Household income
Including basic income, any other income such as overtime, bonus payments or a second job, income from your pension or investments, any child maintenance or financial support from ex-partners.
You’ll need to supply payslips and bank statements as evidence. If you’re self-employed you’ll usually need to provide two or three-years’ worth of tax returns and business accounts.
2. Outgoings
The lender will also consider your household spending each month, such as bills (council tax, gas and electricity, water, broadband), loan repayments like a car lease, childcare costs and any school fees.
3. Credit score
If you’ve got a history of bad credit, you may be able to borrow less and at higher rates. So it’s important to improve your credit score as much as possible before applying for a mortgage. Read our guide on 11 tips to improve your credit score for a mortgage.
4. Deposit size
You usually need at least a 5% deposit to get a fixed rate mortgage but you can get a mortgage with no deposit. However, the bigger your deposit, the better the mortgage rates you may get access to.
5. Loan-to-income ratio
When you apply for a mortgage,lenders will calculate your ‘Loan to income ratio’. Lenders typically lend up to 4.5 to 5 times your income, so if you earn £40,000 you may be able to borrow up to £200,000.
However, maximum loan to income ratios vary by lender. Some of the best mortgage lenders will lend up to 6x your income, depending on your circumstances. So if you earn £40,000 you may be able to borrow up to £240,000.
In theory, the best time to fix a mortgage rate is when the base rate is expected to increase. However, while it’s useful to understand what’s expected to happen to mortgage rates (see our guides to mortgage rate predictions and interest rate forecasts) no one really knows what will happen next with mortgage rates.
So instead of trying to second guess the market, focus on what options are available to you and what is best for your situation. An expert mortgage broker will help you with this.
Who should consider fixed rates?
There are a number of different types of buyers who pay want to consider fixed rate mortgages:
First time buyers: Buying a first home can come with a lot of unexpected costs and choosing a fixed rate mortgage means you’ll have certainty of how much your mortgage payments will be.
Single person mortgage: If you’re buying a house on your own, you may feel a fixed rate mortgage gives you more security. And if you’re getting a single person mortgage, it’s critical to consider how you’d pay your mortgage if you had an accident or were too unwell to work. So make sure you consider income protection and critical illness cover.
Remortgagers: In recent years, we’ve seen mortgage rates spike, leaving many borrowers on variable rate mortgages struggling to pay their mortgage. No one knows what’s next for mortgage rates but fixing your deal offers protection for the duration of your term.
Home movers: If you’re moving home, fixing your mortgage offers you the security of knowing how much you’ll pay on your mortgage each month. This may be particularly useful if you’re buying a more expensive house and your mortgage payments are going to be increasing.
Buy to Let borrowers: Landlords have also seen mortgage rates increase in recent years. The best Buy to let mortgage rates are currently available on fixed deals. Although it’s advisable to get expert mortgage advice when choosing the best mortgage deal for you.
A fixed rate mortgage is a home loan where the interest rate stays the same for a set period — typically 2, 3, 5 or 10 years. This means your monthly repayments won’t change during the fixed term, making it easier to budget and protecting you from interest rate rises. Once the fixed period ends, you’ll usually move onto your lender’s standard variable rate (SVR) unless you remortgage.
Can I extend my fixed rate mortgage?
Yes you can usually extend the term of your fixed rate mortgage to reduce your monthly payments. However, not all lenders offer this and you’ll need to meet their lending criteria.
Can I remortgage before my fixed rate ends?
It is usually possible to remortgage before your fixed rate ends but you may need to pay an early repayment charge if you do this. These are usually 1%-5% of the outstanding mortgage balance.
Is a fixed rate mortgage better than a tracker?
A fixed rate mortgage is better than a tracker if you want certainty over how much your mortgage payments will be during your mortgage deal.
How do I find the best fixed rate mortgage?
Mortgage rates change frequently so the easiest way to find the best fixed rate mortgage is to speak to an expert mortgage broker.
What is the longest fixed rate mortgage in the UK?
The longest fixed rate mortgage in the UK is 30 years. However, fixed mortgage rates of this length are very uncommon. Most fixed rate mortgages are 2, 3, 5 or 10 years.
Do fixed rate mortgages allow overpayments?
Most fixed rate mortgages allow overpayments of up to 10% of the outstanding mortgage balance each year. However, some lenders allow you to overpay more. But not all mortgages have this feature. It’s important to find out what your lender allows because if you overpay by more than the annual limit you may need to pay an early repayment charge.
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