Fixed vs Variable Rates A fixed rate gives you the same monthly payment for a set period, typically two, three or five years. This makes budgeting straightforward and protects you if rates rise. A variable or tracker rate moves in line with the Bank of England base rate. Variable rates can be lower when conditions are right, but they also expose you to rate increases. Most borrowers choose fixed rates for the predictability they offer, particularly when planning a family budget.

The True Cost of a Mortgage Deal The headline interest rate is not the only number that matters. Product fees, arrangement fees and valuation charges all affect the true cost. A deal with a 3.9% rate and a £1,499 arrangement fee may cost more over a two-year term than a 4.1% rate with no fee, depending on your loan size. Our advisers can calculate the true cost of competing deals on your specific loan amount so you can compare like for like.

When to Review Your Mortgage Rate Your mortgage rate should be reviewed regularly, not just when a deal expires. Rates change, your LTV improves as your balance falls and your property may have increased in value since you bought. Reviewing your rate six months before your fixed term ends gives you enough time to compare options and secure a new deal without rolling onto your lender's standard variable rate, which is almost always considerably higher than the best rate available on the open market.