With a fixed rate mortgage, your mortgage repayments will remain the same for an agreed fixed rate period – often from two to five years. After that, it’s common to remortgage to a new fixed rate deal, or your mortgage will revert to your lender’s standard variable rate (SVR).
With a variable rate mortgage, your mortgage payments could go up or down during your mortgage term. There are two main types of variable mortgage: tracker mortgages and discount mortgages. Tracker mortgages track the Bank of England base rate, and discount mortgages offer a fixed discount on the lender’s SVR (which can fluctuate).
Your mortgage adviser will tell you what the best option for your circumstances is after completing a fact find with you and getting to know your requirements.