A fixed-rate mortgage is a mortgage where the interest rate remains the same, or fixed, for the duration of the loan or a set period of time. The fixed rate usually lasts between 2 to 5 years, but it’s sometimes possible to get a fixed-rate of up to 10 years or more.
This means your repayments should stay the same during the fixed rate period, making it far easier to budget and track expenses.
When the fixed-term ends, your mortgage will most likely transition to the lender’s standard variable rate – unless you take a new product with your existing lender or remortgage to another lender that has a more competitive rate. You can usually arrange this 3 to 6 months before your fixed rate term ends.