In recent time fixed rate mortgages have enjoyed an unprecedented level of popularity. With a fixed rate mortgage you have the ability to fix your monthly mortgage repayments at a guaranteed figure for a set period of time. The rate can be fixed at anything from one to twenty five years, with most people in the UK opting for two years, although there are some competitive longer fixed term rates on offer from some lenders.

Fixed rates offer maximum security and give borrowers invaluable peace of mind, whether they are first time borrowers or long standing homeowners.

Lenders offer special fixed rate offers with the hope that after they end, borrowers will forget to change their mortgage and stay with them paying the high rates on their Standard Variable Rates. 

Furthermore, some lenders will lock you in, and will charge a fee if you want to change mortgage within a certain timeframe. For example, a two-year fixed rate deal might have a 'collar' that stops you switching for a further three years after the fixed rate end. Where possible these should be avoided and instead go for products which have no extended redemption penalties.