How fixed rate mortgages work
You choose a number of years to fix your rate for usually two,
three or five. For this fixed period, your monthly payments will
stay the same. After your fixed rate period you move onto the
Santander Follow-on Rate (variable).
A fixed rate mortgage might suit you if:
- you prefer to know exactly what you need to pay month to month
during the fixed rate period.
With a fixed rate mortgage you can budget for a set period of time.
If the Bank of England base rate goes up and you’re still in your
fixed rate period, your monthly payments won’t increase.
You can overpay up to 10% of your fixed rate loan amount each
calendar year (January to December) without paying an early
If the Bank of England base rate goes down and you’re still in your
fixed rate period, your monthly payments won’t decrease.
If you repay or want to move your mortgage during the fixed rate
period, you’ll most likely pay an early repayment charge.