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Fixed-Rate Mortgage Deals

How to get the best deal on a fixed-rate mortgage.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: November 23, 2021

A mortgage could be the most expensive loan you ever take out, so the interest rate on that mortgage should be a key factor to consider when deciding which provider to go with.

Many people reap the benefits of a fixed-rate mortgage rate which is guaranteed to stay the same for an agreed period of time. This could provide a level of certainty about how much your mortgage payments will be, making budgeting and saving a little easier.

But with so many cheap fixed-rate mortgages to choose from, how do you know what the best fixed-rate mortgage is? And how can you know for sure who the best fixed-rate mortgage provider is?

Read on for the answers to these questions and more.

Getting a mortgage and then later realising that you have potentially missed out on a cheaper fixed-rate mortgage deal can be so frustrating.

To avoid missing out on the best rates available today, speak with an expert who can scour the market and compare them for you.

Make an enquiry to be put in touch with a financial advisor.

What is the average fixed mortgage rate in the UK?

At the time of writing, it is possible for straightforward customers (i.e. those with clean credit and an adequate deposit) to take out a fixed-rate mortgage with an initial interest rate of less than 2%. But keep in mind that the actual rate you end up with can vary based on a number of factors.

A fixed-rate mortgage can be typically taken out for a 1-10 year period and, throughout this time, the interest rate remains the same.

Although the rate doesn’t change during the initial rates period of your contract, the rates that each individual lender offer can vary across the market, which means the current interest rates on fixed-rate mortgages could differ frequently.

As well as this, every property value and condition will trigger a different loan amount being calculated by the lender, meaning the rate offered to you may be different to the rate offered by the same lender to another borrower.

To lock in the current fixed-rate mortgage interest rates, contact an advisor today who can take you through the process and secure your rate.

Can my circumstances affect me getting the best deal?

Potentially, yes. When you apply for a mortgage, your lender will want to establish your affordability and the likelihood of you missing mortgage payments.

Usually, the most competitive fixed-rate mortgage rates are offered to borrowers with clean credit, healthy deposit size and an income that can comfortably cover your mortgage payments and other associated living costs.

But that doesn’t necessarily mean that you have to have an immaculate credit report or an above average income to get the best fixed-rate mortgage deals.

In fact, the brokers we work with have been able to find great fixed-rate mortgage deals for hundreds of borrowers, even those with a limited credit history or a lower deposit.

That’s because some lenders can take other factors into consideration and there are even a handful that specialise in fixed-rate mortgage deals for people with bad credit, lower deposits or irregular income.

Contact an advisor and they can go through the options that could be available to you.

How do I get a fixed rate mortgage with low LTV?

This is a simple case of putting down a higher deposit.

The loan to value (LTV) ratio refers to the percentage of the property that the mortgage covers. For example, a £100,000 mortgage on a £200,000 house has an LTV of 50%.

Putting down more deposit can increase your chances of landing a more favourable fixed-rate mortgage deal as the lender would taking on less of a risk.

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Where can I find the best fixed interest rates?

Speaking to a whole-of-market broker is the right way to go about this.

The internet can be a great source of information but when it comes to your finances, it is recommended that you never just rely online rate tables. Fixed mortgage rates can change substantially within short periods of time, so often the information you read on these tables is outdated or incorrect.

A lot of comparison websites aren’t whole of market, meaning that not every lender will appear on their site.

Some people find it helpful to go directly to a lender but to get a good comparison of the full range of the best fixed interest rate mortgages, this would take a considerable amount of time.

The good thing about a mortgage broker is that they have access to an online hub and database which updates interest rates and lender information in real time.

A full comprehensive list of the best fixed-rate mortgage deals is easily accessible for a broker and they can provide you with this information upon request.

Can a broker help me compare the best fixed-rate interest mortgages?

Yes! This is all part of the service they provide.

After scrolling endlessly through websites to compare deals, a lot of people still feel unable to determine what the best fixed-rate mortgages are.

This is so frustrating for borrowers who just want to find a good deal without getting weighed down by interest rates, customer reviews and the varying terms and conditions that come with each fixed-rate mortgage.

As well as provide you with a list of lenders and rates to compare, a mortgage broker can also take the weight of comparing deals off your shoulders.

Using their experience and their knowledge about which lenders offer the best fixed-rate mortgages, they can quickly identify which rates are better suited to your needs and whether the lender is likely to accept your application.

How long can I secure my fixed mortgage rate for?

Most fixed-rate mortgage providers offer their best fixed mortgage rates for smaller periods of time between 1-2 years and you may find that the longer you lock in your rate for, the higher the interest on your loan.

This isn’t necessarily always the case and with new fixed-rate mortgage deals coming on to the market frequently,  it may be possible to secure a cheap long term fixed mortgage rate for a longer period of time.

The help of a mortgage broker can be invaluable with this as they will know when new deals are available and how long they are being offered for.

Ask an advisor for guidance if you’re looking for the best long term fixed-rate mortgage deals.

What happens after my fixed rate mortgage period ends?

Once this period of time ends, most lenders will switch the rate to a standard variable rate (SVR) which is less predictable because it can fluctuate over time.

Most mortgage agreements span across 25 years so this could mean that, although the initial rate seems cheap, the variable rate that would be chargeable for the majority of the mortgage agreement, could become unaffordable.

How to find the best fixed-rate for a remortgage

A solution to this problem would be to begin a fixed-rate mortgage comparison roughly 6 months ahead of your fixed-rate period ending, with the intention of switching your mortgage to find a better fixed-rate mortgage deal in the UK.

Refinance through a qualified broker

When searching for a broker, make sure to ask whether they have experience in finding the best fixed-rate remortgage deals.

Your mortgage rate can significantly affect your finances, so it’s in your best interest to work with an expert.

The brokers we work with are carefully vetted and we only ever recommend brokers that we believe are best placed to find you the cheapest deals and best fixed rate remortgages in the UK.

Consider whether it’s best to get a fixed-rate mortgage now

When getting a mortgage it’s always worth asking whether fixed-rate mortgages will get cheaper.

Outside influences such as Brexit uncertainty or the base rate can affect the interest rates offered by lenders. Because of this, in some instances it may be worth delaying a switch until the outcome of said events is clearer.

With that being said, holding off on remortgaging before your fixed term is up could also mean that you could miss out on a good deal, so ask a professional for their opinion and guidance before making a decision on the latest fixed rate mortgage deals.

Start comparing remortgage rates early

Time is of the essence when comparing the best fixed refinance deals, so give yourself enough of it to carefully consider your options and calculate your new mortgage payments with each lender.

Can this be tedious? Yes, but with the help of a mortgage broker, this can be a lot quicker (especially as they can do it for you!)

Should I compare fees?

Absolutely! It’s easy to get drawn in by the cheapest fixed mortgage rates but another major consideration should be the fees associated with the mortgage.

Some fixed-rate mortgages can come with lots of additional fees and the cost of these them may outweigh the benefits of the low initial interest rate mortgage.

These may include:

Arrangement fees

This is essentially a fee paid to the lender for setting up your mortgage. You may find that the lower your fixed-rate mortgage, the higher your arrangement fee.

Overpayment fees

Some lenders allow borrowers to overpay on their mortgage and this can be really helpful, especially if you have plans to pay back your loan ahead of your agreement.

The problem is that some lenders can have a maximum overpayment amount and if you exceed this, you can be heavily penalised.

While you may not be thinking about overpaying your mortgage just yet, you may want to in the future and this could have a significant effect on your future mortgage payments.

Read our guide on mortgage overpayments for more information.

Where to find the best fixed-rate mortgages for first-time buyers

Depending on your circumstances as a first-time buyer, it may be possible to still get the best fixed-rate mortgage deals in the UK.

In fact, the brokers we work with have access to hundreds of fixed-rate mortgage lenders and using their expertise, they can find and compare the best first-time buyer fixed-rate mortgages to help you get onto the property ladder.

Contact a specialist or see our first time buyer guide to learn more.

Where can I get the best fixed rate interest-only mortgage deals?

Fixed interest-only mortgages can be beneficial for borrowers who want lower monthly payments now but will be in a position to pay off the capital of the loan at the end of the mortgage term.

Some borrowers opt for this route because of the freedom it can provide. Paying back only the interest of the loan can free up funds for home improvements or savings that could accumulate interest and then be used in the future to pay off the loan.

With that being said, once the fixed interest term is over and the full amount is due, interest rates can increase rapidly meaning that the cheapest fixed-rate mortgage deal isn’t necessarily the best value.

To avoid unaffordable payments, it’s important to compare the best fixed interest-only rates with a broker.

Ask an expert about the best fixed-rate home mortgages

Online Mortgage Advisor has years of experience and has helped thousands of clients successfully find the top fixed-rate mortgages in the UK.

We never charge a fee for connecting you to the right expert so give us a call on 0808 189 2301 or make an enquiry to kickstart your search.

We won’t charge a penny for introducing you to your perfect broker, there’s no obligation and your credit report will not be affected.

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We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Fixed-Rate Mortgages.
Ask us a question and we'll get the best expert to help.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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