Fixed-Rate Mortgages

Shorter fixes (2-3 years) typically offer lower rates but you'll need to remortgage sooner. Longer fixes (5-10 years) provide extended certainty but may have higher rates. 2-year fixes suit those expecting circumstances to change soon. 5-year fixes are most popular for stability. 10-year fixes work well if you plan to stay long-term and want maximum security.

Most fixed-rate mortgages have ERCs if you repay or remortgage during the fixed period. These are typically 1-5% of the outstanding balance in the early years, reducing as you near the end of the term. Some lenders allow 10% overpayments per year without penalty. Always check ERC structure before committing to a fixed deal.

Don't just compare interest rates—look at the total cost including fees. A slightly higher rate with lower fees can be cheaper overall, especially on smaller mortgages. Use the APRC (Annual Percentage Rate of Charge) to compare like-for-like. Factor in how long you'll have the mortgage when calculating value.

You can typically secure a new fixed rate up to 6 months before your current deal ends. Locking in early protects against rate rises but means you might miss rate falls. Most lenders allow you to switch to a better deal if rates drop before completion. Don't wait until you're on the SVR—start looking 3-4 months before your fixed term ends.

Many fixed-rate mortgages are 'portable'—you can take them to a new property if you move during the fixed period, avoiding ERCs. Not all lenders offer this, and you'll need to requalify based on the new property. If you're likely to move, choose a portable product or one with low ERCs.

When your fixed period ends, you automatically move to your lender's Standard Variable Rate (SVR), typically 1-3% higher than fixed rates. This is when you should remortgage to a new deal. Set a reminder 3-4 months before the end date. Some lenders send retention offers but shopping the whole market usually finds better deals.