Variable Rate

Here, the interest rate you pay remains the same for a set period of time, so your mortgage repayments will remain the same, even if interest rates rise. This type of mortgage is often available as two, three or five-year deal, and gives you the peace of mind of knowing what your repayments will be for the duration of the fixed term.

If you choose a fixed-rate mortgage, you will need to think about arranging your next mortgage deal a few months before it ends, as when it does, you’ll be moved onto your lender’s Standard Variable Rate (SVR), which generally means you’ll be charged a higher rate.