Helpful links for mortgage customers
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2 year fixed rate mortgage
A 2 year fixed rate means your monthly payment will remain the same for 2 years. After 2 years from the point you receive the mortgage, you would move onto the lender’s standard variable rate (SVR), unless you switch to a new deal with the same lender, or remortgage to a new lender.
- At the end of the 2 year period, you'll be able to remortgage or move home without paying an early repayment charge (ERC).
- It may be a good option if you plan to move home in the near future and don’t want to be locked into a mortgage rate for a longer fixed term.
- Keep in mind that interest rates could change over time, fluctuating up or down. An increase in interest rates, for example, could make a remortgage in 2 years time more expensive, while a decrease could mean your monthly repayments go down.
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5 year fixed rate mortgage
If you choose a 5 year fixed rate mortgage, your monthly payments will stay the same for 5 years. This means you won’t switch to the lender’s standard variable rate (SVR) until the end of the 5 year period.
- With a 5 year mortgage, you keep the same interest rate for that 5 year period. After that time, you can remortgage without paying an early repayment charge (ERC). But if you choose to remortgage before those 5 years are up, it’s likely you'll need to pay an ERC.
- If you plan to stay in your home for a while, a 5 year fix gives you the stability of knowing exactly what your monthly repayments will be. Some people choose a 5 year fixed rate for this kind of financial predictability.
- Locking in an interest rate for 5 years can protect you from potential rate increases. If rates decrease within this period, you could switch to a lower rate – but you may need to pay an ERC to exit your current deal early.
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Fixed rate mortgage benefits
You’ll know exactly how much your mortgage will cost each month.
Your payments won’t increase even when your lender’s SVR goes up. However, they may increase at the end of the fixed period.
It’s easier to budget each month when you know what you’re paying.
Please be aware that if your lender's mortgage rates fall, you'll still be tied into your fixed rate mortgage until the introductory rate ends.
An Early Repayment Charge (ERC) can be paid in order to exit your current deal and find a new rate.
Fixed rate mortgage
- With a fixed rate mortgage you pay the same amount of interest each month over the duration of the mortgage deal.
- With a fixed rate mortgage there can be limitations to making overpayments (for example, 20% of the mortgage loan per year).
- The interest rate may also be higher compared to other mortgage types, meaning you could be paying more in the long term.
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Tracker mortgage
- With a tracker mortgage, your interest rate is usually linked to the Bank of England base rate. This means your monthly payments can go up or down in line with the base rate (external rate).
- If the external rate reduces, your payments will likely reduce.
- If the external rate increases, this will also be passed on and can increase your monthly payments.
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Already have a mortgage with us?
Is your mortgage term coming to an end? Take a look at our mortgage switcher information to see if it would be suitable to move to a new deal.
Moving house but still have time left on your mortgage deal? You may be able to take your mortgage with you. This is known as 'porting'.
