In a fixed rate mortgage arrangement, the interest rate is fixed for a pre-determined period of time, which can be for up to 5 years or more. The monthly mortgage payment will not change, no matter whether the Bank of England, or the mortgage provider, raises or reduces their interest rates. For the  borrower, the advantage of a fixed rate deal is that he or she knows exactly how much their monthly repayment is going to be each month and for how long.

In some instances, the interest rate charged on a fixed rate mortgage can be higher than the interest rates charged for other types of mortgages. The borrower may also have to pay an arrangement fee to set up a fixed-rate deal.

Usually, once a fixed rate arrangement comes to an end, the lender's standard variable rate applies.

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A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

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Mortgages

Mortgages are loans which are intended to help buyers purchase residential property. When an individual takes out a loan, the lender charges interest: the...

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Equity Release

Equity release is typically available to people who are over the age of 55 and have their own home with a significant amount of equity, but don’t have...

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Homeowner Loans

Lower payments and more disposable income is just around the corner

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