As the name suggests this product will ensure your mortgage rate does not change for the duration of the arrangement. Typically, this is between 2-5 years in duration, but longer options are available. Fixed rate mortgages are often popular with borrowers who require stability with their payments allowing them to budget effectively each month.

At the end of a fixed rate mortgage lenders will typically revert you on to a variable rate product. This is often referred to as a lenders standard variable rate (SVR). This product usually does not have any early repayment charges and therefore can be used to make large overpayments or to pay off the mortgage entirely without penalty. However, this flexibility is usually at the cost of a significantly higher interest rate.

Tracker rate mortgages track a particular interest rate. This is usually the Bank of England base rate (BoEBR) which is subject to regular review. The lender will normally have an initial rate. For example if the initial rate was 2%, the deal would then be expressed as 2%+BoEBR. As this rate may change, your monthly payment could also vary each month with your lender.