Fixed Rate Mortgages
Find your fixed rate mortgage with L&C
Want stability with your mortgage payments? Love the idea of being able to budget long-term? Worried about rising interest rates? A fixed rate mortgage might be just what you’re looking for.
Our dedicated advisers will search 1000s of deals from over 95 lenders and guide you through your options, handle the paperwork, and support your application from start to finish.
Quick summary
A fixed rate mortgage keeps your interest rate and monthly repayments the same for a set period, giving you certainty and protection if rates rise. You can usually choose from different fixed terms depending on how long you want that security and how much flexibility you need.
The right deal isn’t always the one with the lowest rate, so it’s important to consider fees, early repayment charges and your future plans too. L&C can compare 1000s of deals from over 95 lenders and help you find a fixed rate mortgage that suits you.
What is a fixed rate mortgage?
A fixed rate mortgage means the interest rate stays the same for the length of your fixed rate mortgage deal. This means you’ll know exactly how much your monthly repayments will be for the fixed rate period.
Fixed rate mortgages come in 2, 3, 5, and 10-year terms, although some lenders might offer longer terms.
Each term comes with different interest rates, early repayment charges (ERCs) and fees. Whatever length you choose, your mortgage repayment amount will stay the same for that amount of time.
How do fixed rate mortgages work?
A fixed rate mortgage keeps your interest rate and monthly mortgage payments the same for a set period.
For example, if you choose a five-year fixed rate mortgage, your interest rate and monthly repayments will stay the same for five years, so long as you don't make significant changes to the loan.
This means:
- Your monthly payments won't increase if interest rates rise
- You'll know exactly what your mortgage will cost each month
- Budgeting can be simpler and more predictable
However, if mortgage rates fall during the fixed rate period, your mortgage rate won’t fall with them.
Example of fixed rate vs variable rate mortgage payments
Imagine two homeowners each borrow £250,000 on a repayment mortgage.
- John chooses a five-year fixed rate mortgage
- Sarah chooses a variable rate mortgage
If mortgage rates increase during the next five years:
- John’s monthly payments stay the same
- Sarah’s monthly payments will rise
If mortgage rates fall:
- John’s payments stay the same
- Sarah’s monthly payments will fall
What happens when your fixed rate ends?
You’ll usually be moved onto your lender's Standard Variable Rate (SVR).
The SVR is often a higher interest rate, meaning your monthly payments will increase.
That's why it’s best to review your options before the fixed rate expires. In many cases, you can secure a new mortgage deal before your current one ends, helping you avoid moving onto a higher rate.
Is a fixed rate right for you?
Mortgage Expert
Our L&C adviser says
Fixed rate mortgages can provide valuable peace of mind, but they're not right for everyone.
If you're planning to move home, repay a large lump sum, or significantly change your borrowing in the near future, it's important to understand how early repayment charges could affect you.
We spend a lot of time helping customers balance payment certainty against future flexibility.
If you're ok with some uncertainty and want to take advantage of possible rate falls, a tracker or variable rate mortgage could be worth a look.
What fixed rate mortgage term is right for you?
2-year fixed rate mortgage
2-year fixed rates are normally the shortest fixed rate mortgage available.
Our customers have taken 2-year deals because they:
- Think rates might drop soon and want the freedom to review things in a couple of years time
- Expect a change in their situation, like moving home, getting a pay rise or paying off other debts
- Want to get onto the property ladder fast and plan to remortgage once they’ve got more equity
- Prefer not to commit for long until they’re sure the property or lender suits their needs
- Are confident they’ll keep an eye on the market and don’t mind reviewing the deal every 18 months or so
Because a 2-year fixed rate mortgage is such a short deal length, it gives you the chance to switch to another mortgage deal after a short period without ERCs
3-year fixed rate mortgage
Our advisers have found 3-year deals suit people who are trying to balance flexibility and security, and:
- Want more breathing space than a 2-year deal but aren’t ready to lock in for five years
- Expect life changes in the near future, like starting a family or changing jobs
- Think rates might move a little but not drastically, balancing risk and flexibility
- Have young children who may need to move schools
- Want to avoid frequent remortgaging costs but still keep some control over their timings
- Like a “middle-ground” approach, stable, but not long-term
This type of mortgage generally comes with ERCs if you find yourself having to move earlier than planned.
5-year fixed rate mortgage
A 5-year fixed rate mortgage can be a nice middle ground between long and short fixed terms. Our research has shown it can be a great length for people who:
- Have children in school as it gives them some long-term stability
- Value payment stability and don’t want to worry about rates for a while
- Want predictable monthly costs to help with family budgeting or longer-term plans
- Believe rates are likely to rise and want to lock in before that happens
- Don’t plan to move or make big financial changes in the near future
- Prefer fewer remortgages and the costs or stress that come with them
10-year fixed rate mortgage
A 10-year fixed rate mortgage could be a good option if you’re happy with the mortgage rate offered, know your circumstances won’t change dramatically in the next ten years and want to protect yourself from future rate rises.
Our customers have gone for 10-year fixed rate mortgages because they:
- Want long-term certainty and peace of mind about their monthly payments
- Are settled in their ‘forever home’ and don’t expect to move soon
- Worry about future interest rate rises and would rather avoid the risk for longer
- Like knowing exactly what they’ll pay well into the future, especially if they’re planning around education or retirement
- Prefer to ‘set it and forget it,’ even if it means paying a little more for that security
Some fixed rate mortgages are portable, meaning you might be able to transfer your deal to a new property if you move home during the fixed term. You will have to re-apply for your mortgage however, and your lender will carry out new affordability checks along with a valuation of the new property.
Advantages and disadvantages of fixed rate mortgages
A fixed rate mortgage can offer valuable certainty, but you should understand the benefits and potential drawbacks before choosing a deal.
The right option for you will depend on your finances, future plans and how comfortable you are with changes in interest rates.
Advantages of fixed rate mortgages
Know exactly what you'll pay each month
Your monthly mortgage repayments stay the same throughout your fixed term, making it easier to manage your household budget and plan ahead.
Protection from interest rate rises
If mortgage rates increase after you've fixed your deal, your rate and monthly payments won't change until your fixed period ends.
Easier budgeting
Many homeowners prefer the stability of fixed payments, especially when balancing other financial commitments such as childcare, household bills or saving for the future.
Greater peace of mind
You won't need to worry about movements in the mortgage market affecting your monthly repayments during your fixed term.
Choice of fixed terms
Most lenders offer a range of options, including 2, 3, 5 and 10-year fixed rate mortgages, allowing you to choose a level of certainty that suits your plans.
Disadvantages of fixed rate mortgages
You won't benefit from falling rates
If mortgage rates decrease during your fixed term, your rate will stay the same, meaning you could miss out on lower monthly payments available with different mortgage types.
Early repayment charges may apply
Most fixed rate mortgages include early repayment charges (ERCs) which [AB10.1]apply if you repay a large part of your mortgage or leave the deal before the fixed period ends.
Rates can sometimes be higher
Fixed interest rates can initially be higher than tracker or variable rate mortgages, particularly when banks and building societies expect interest rates to rise in the future.
Mortgage Exert
Our L&C adviser says
One of the most common questions we hear is whether a 2-year or 5-year fixed rate mortgage is better. In reality, there's no universal answer.
Customers who expect a significant change in the next few years, such as moving home or increasing their income, often value the flexibility of a shorter fix. Those who want reassurance that their mortgage payments won't change for longer typically prefer a 5-year deal.
The best option usually comes down to your future plans rather than simply choosing the lowest rate available.
Fixed rate mortgage pros and cons at a glance
How much does a fixed rate mortgage cost?
Your fixed rate mortgage cost will depend on your specific circumstances, deposit size, house price and interest rate.
It’s important to remember the cost of a fixed rate mortgage isn't just down to the interest rate. While a lower rate can help reduce your monthly payments, there are other fees and charges that can affect the overall cost of a deal.
That's why it's important to look at the total cost over the fixed period, rather than focusing on the headline rate alone.
What makes up the cost of a fixed rate mortgage?
Interest charges
The biggest cost of any mortgage is usually the interest charged by the lender.
The lower the interest rate, the less you'll typically pay each month. However, the lowest rates aren't always the best value once fees are taken into account.
Product or arrangement fees
Many lenders charge a product fee, sometimes called an arrangement fee, to access certain mortgage deals.
These fees can range from a few hundred pounds to over £1,000. In some cases, you can add the fee to your mortgage, although you'll then pay interest on it.
Valuation fees
Some lenders charge a fee to assess the property's value, although many mortgage deals include a free standard valuation.
Legal fees
If you're remortgaging, some lenders may offer free standard legal work as part of the deal. If not, you'll usually need to cover these costs yourself.
Early repayment charges (ERCs)
If you leave your mortgage deal or repay a significant portion of your loan during the fixed period, you may have to pay an early repayment charge.
These charges are often a percentage of your remaining mortgage balance and can be substantial.
What can affect the interest rate you're offered?
The mortgage rate available to you will depend on several factors, including:
- The size of your deposit
- Your loan-to-value (LTV) ratio
- Your credit history
- Your income and affordability
- Whether you're buying a home or remortgaging
- The length of your fixed term
In general, having a larger deposit can help access lower mortgage rates because you're considered a lower risk by lenders.
Mortgage Adviser
Our L&C adviser says
Many borrowers focus on finding the lowest interest rate, but that's not always the cheapest mortgage overall.
We've seen cases where a slightly higher rate with no product fee works out better value than a lower rate with a large arrangement fee.
Looking at the total cost of the mortgage over the fixed period can give a much clearer picture.
How to get the best fixed rate mortgage deal
While you can't control mortgage market conditions, there are ways to improve your chances of accessing competitive rates:
- Save the largest deposit possible
- Check your credit report before applying
- Avoid taking on new credit shortly before application
- Compare deals across a wide range of lenders
- Review both the interest rate and any associated fees
- Consider the total cost over the fixed period
Fixed rate mortgages for different situations
The right fixed rate mortgage will depend on your circumstances, plans and financial goals. Whether you're buying your first home, remortgaging or moving house, fixing your rate can provide valuable certainty over your monthly payments.
Explore the options below to find the most suitable path for your situation.
Fixed rate mortgages for first-time buyers
A fixed rate mortgage can offer reassurance by keeping your monthly repayments the same throughout the fixed period. This can make it easier to manage your finances and avoid unexpected increases in your housing costs.
A fixed rate mortgage could be a good option if you:
- Want certainty over your monthly payments
- Are budgeting carefully for your first home
- Prefer stability while adjusting to homeownership
- Want protection from potential interest rate rises
Fixed rate remortgages for when your deal’s coming to an end
If your current mortgage deal is coming to an end, switching to a new fixed rate mortgage could help you secure a competitive rate and avoid moving onto your lender's Standard Variable Rate (SVR).
A fixed rate remortgage could suit you if you:
- Want to avoid a higher SVR
- Value predictable monthly payments
- Want to lock in a new rate before your current deal ends
Fixed rate mortgages when moving home
If you're planning a move, you'll need to decide whether to transfer your existing mortgage or apply for a new mortgage deal.
A fixed rate mortgage could be worth considering if you:
- Want predictable payments in your new home
- Are moving to a larger property with higher monthly costs
- Prefer stability while adjusting to new household expenses
- Want protection from future rate increases
Fixed rate mortgages for self-employed borrowers
Being self-employed doesn't prevent you from getting a fixed rate mortgage, although lenders will usually require additional evidence of your income.
Many self-employed borrowers choose fixed rates because they value certainty and predictable monthly payments, particularly if their income can fluctuate throughout the year.
You may be able to access competitive fixed rates if you can provide:
- Recent accounts
- SA302s or tax calculations
- Bank statements
- Evidence of ongoing income
Fixed rate Buy to Let mortgages
Landlords often choose fixed rate mortgages to help manage costs and improve cash flow planning.
Knowing your mortgage payments in advance can make it easier to forecast rental yields and understand the profitability of a property investment.
A fixed rate Buy to Let mortgage may appeal if you:
- Want predictable borrowing costs
- Prefer greater certainty when planning rental income
- Want protection from market fluctuations
- Are building a long-term property portfolio
Not sure which mortgage is right for you?
The best fixed rate mortgage for one person won't necessarily be the best option for someone else.
That's why our advisers take the time to understand your circumstances, before comparing 1000s of deals from over 95 lenders to help find you a mortgage unique to you.
6 reasons to choose L&C for your fixed rate mortgage
Finding the right fixed rate mortgage isn't just about securing a competitive rate. It's about finding a deal that fits your circumstances, future plans and budget.
That's where L&C can help.
- Access to 1000s of mortgage deals
- Free mortgage advice
- We'll help you look beyond the interest rate
- Dedicated support throughout your application
- Trusted by over 1 million customers
- Simple online tools, backed by expert advice
How to apply for a fixed rate mortgage with L&C
Step 1 – Start online
Compare the latest mortgage deals with our online Mortgage Finder.
Step 2 – See what you could borrow
See how much you could borrow with an L&C Mortgage in Principle. It won’t impact your credit score, and you could get your certificate in as little as 15 minutes.
Step 3 – Start your application with a trusted adviser
Speak to a dedicated mortgage adviser and find a deal that suits your specific circumstances.
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