What a fixed rate actually fixes
For the initial period — two, three, five or ten years — your interest rate does not move. Neither does your monthly payment, unless you change the loan yourself.
What it does not fix is the rest of your housing costs. Buildings insurance, service charges, ground rent and property taxes carry on changing. A fixed rate removes the largest variable, not every variable.
The trade you are making
You pay slightly more than the equivalent variable rate today in exchange for certainty. If rates fall, you do not benefit until the fix ends. That is the deal, and it is a reasonable one for most households.
Who it suits
- You are budgeting to the edge and a payment rise would genuinely hurt.
- You are a first-time buyer absorbing a lot of new costs at once.
- Your income is fixed or predictable and you value matching certainty on the outgoing.
- You expect rates to rise, or simply do not want to think about it.
When it suits less well
- You may need to repay early or move within the fixed period — early repayment charges apply.
- You have a large lump sum coming and want to overpay heavily beyond the annual allowance.
- You believe rates will fall materially and can comfortably absorb it if you are wrong.
Choosing the length
| Period | Typically chosen when | Watch for |
|---|---|---|
| 2 years | You expect circumstances to change soon, or think rates will fall. | You pay arrangement fees again sooner, and re-enter the market twice as often. |
| 3 years | A middle path between flexibility and stability. | Fewer products available than at two or five years. |
| 5 years | You are settled and want to stop thinking about it. | Early repayment charges bite for longer if plans change. |
| 10 years | Long-term certainty matters more than anything else. | A decade is a long time to be locked to one rate. Check portability carefully. |
What happens when the fix ends
The loan reverts to our standard variable rate, which is almost always higher than a current product. Doing nothing is the most expensive option available to you.
We contact you in advance
You are notified before the initial period ends, with the reversion rate and what your payment would become.
Switch to a new product
Existing customers can move to a new rate without a full reapplication in most cases. It is the simplest route.
Or remortgage elsewhere
You are free to move. We would rather keep you, but the decision is yours and there is no penalty once the fix has ended.
Diarise it now
Set a reminder for six months before your fix ends. That is when switching is easiest and the choice is widest.
Costs and flexibility
- Early repayment charge
- Applies if you repay all or part of the loan beyond the annual allowance during the fixed period. The amount is stated in your offer, usually as a percentage that reduces each year.
- Annual overpayment allowance
- Up to 10% of the outstanding balance each year without charge on most products. Overpaying reduces capital and therefore total interest.
- Portability
- Most fixed products can be moved to a new property if you sell and buy, subject to a fresh affordability assessment.
- Arrangement fee
- A flat amount or percentage. Adding it to the loan spreads the cost but means paying interest on it for the whole term.
Next steps
Documents you may also need
Variable Rate Mortgages
Your rate moves with the market. Cheaper than a fix when rates are stable or falling, and more expensive when they are not.
MortgagesToday's Mortgage Rates
Indicative rates across our fixed, variable and specialist mortgage ranges, and the factors that decide which one you are offered.
MortgagesLending Criteria
What we can lend, to whom, and against what property — published in full so you can check before you apply rather than after.
This document was last updated on 1 August 2026. We publish the current version here at all times; superseded versions are available on request.
If anything on this page is unclear, write to us and we will explain it.