Compare Fixed Rate Mortgages

What is a fixed-rate mortgage?

A fixed-rate mortgage provides a way for you to fix your mortgage rate for a set period of time. This might be for anywhere between one and 40 years, although two-, five- and 10-year fixed-term mortgage deals tend to be the most widely available.

The fixed-rate term you choose is the length of time during which your monthly mortgage repayments will remain unchanged.

» COMPARE: Five-year fixed rate mortgages

What are the benefits of fixed-rate mortgages?

Fixed-rate mortgages offer borrowers security and peace of mind. With a fixed-rate mortgage, you will know exactly how much you’ll be paying for the length of your mortgage deal. This means you can budget accordingly and you will be protected from potential interest rate rises.

What are the downsides to a fixed-rate mortgage?

The biggest downside of a fixed-rate mortgage is that if interest rates were to fall, you would not feel the benefit through a decrease in your mortgage repayments. Traditionally, fixed-rate mortgages have also tended to have slightly higher interest rates than variable rate mortgages. However, to be sure you might want to compare both types of mortgage during your search.

» COMPARE: Variable rate mortgages

Is a fixed-rate mortgage better than a variable rate mortgage?

The answer to this will usually depend on your personal situation and how much risk you’re prepared to take on in relation to interest rates.

A fixed-rate mortgage will usually be preferable if you are risk-averse and want to rule out the possibility of your mortgage payments rising during the fixed-rate period.

Alternatively, a variable rate mortgage may be worth considering if it offers a lower mortgage rate and your finances could comfortably absorb any future rate rise.

» MORE: How fixed- and variable rate mortgages differ

Types of fixed-rate mortgage

Certain fixed-rate mortgages are available offering features designed to cater to different borrower needs.

Fixed-rate no-fee mortgages

As these fixed-rate mortgages have no arrangement fees, they can be an option if you need to keep your initial costs to a minimum. The downside of fixed-rate no-fee mortgages is that they usually have higher interest rates to make up for the lack of upfront charges.

» COMPARE: No fee mortgages

Fixed-rate interest-only mortgage

With a fixed-rate interest-only mortgage, your monthly payments are fixed but will only need to cover the interest that you are charged on your loan each month. While this helps to keep repayments low, you will need a way to repay the actual loan amount at the end of the term, as you’re not paying any capital off as you go. They are also only available on low loan to house value loans.

» COMPARE: Interest-only mortgages

How long can I fix my mortgage rate for?

The majority of fixed-rate mortgages tend to be for either two or five years. However, should you want to fix for longer, there are usually some 10-year fixes available and sometimes the market will offer deals that stretch as long as 15, 20 or 40 years, but these can come and go. Shorter fixes of one, three and four years can also sometimes be available on the mortgage market.

» COMPARE: Two-year fixed-rate mortgages

How do I choose the best fixed-rate mortgage?

NerdWallet’s mortgage comparison tool offers the best way to find a fixed-rate mortgage that is suitable for you.

Simply select the type of borrower you are, and a few short questions later you will be presented with the fixed-rate mortgages most likely to fit your needs. Comparisons are made easy as you’ll immediately be able to see the initial fixed interest rate, APRC and fees for each mortgage, along with an indication of what your monthly repayment might be.

The Annual Percentage Rate of Charge, or APRC, will help you get an idea of the overall cost of the home loan, including the interest rate but also other charges, making it easier to compare mortgage deals.

Fixed Rate Mortgages FAQ