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Fixed rate mortgage
A fixed rate mortgage gives you a fixed interest rate for a set period of time. This can help you budget for monthly repayments without wondering if your rate will go up or down.
Apply for a fixed rate mortgageWhat is a fixed rate mortgage?
A fixed rate mortgage gives you a set interest rate for an agreed term. This means you have a better idea of what you’re going to pay each month for a set period of time.
You can usually pick how long you want the fixed rate for, but this can impact the interest rate.
When your fixed rate ends, your rate will change to one of your lender’s standard variable rates (SVR) unless you switch to a new deal.
Your fixed rate mortgage options
Fixed rate mortgages can cover different term lengths, usually from 2 to 10 years. See the fixed rate mortgage deals available at Lloyds Bank:
Why apply for a fixed rate mortgage?
- Security.
A fixed rate for a set period may protect you from interest rate increases during that time. Though you won’t see your rate drop if interest rates go down. - Cost.
A fixed rate mortgage may offer lower rates than the SVR - useful if your deal is ending soon. - Choice.
You can select a term for your fixed rate mortgage deal based on your current situation. You may also be able to overpay up to a certain amount set by your lender.
Keep in mind, these benefits may vary depending on personal circumstances. Factors like your credit score and the deposit amount you can afford may also impact your eligibility.
Is a fixed rate deal right for me?
Not sure if a fixed rate is suitable? You may want to consider the following factors:
- Higher rates.
A fixed rate deal may come with higher interest rates.
- No benefit from rate drops.
If interest rates fall, your repayments may not see the benefit. You may also pay more than if you were on a variable rate.
- Moving house.
If you want to move house during your fixed rate deal, you may be able to port your mortgage instead of having to get a new deal.
- Early repayment charges.
Moving home or changing your deal before your term ends may result in early repayment charges.
Ready to apply for a fixed rate mortgage?
You could lose your home if you don’t keep up your mortgage repayments
Frequently asked questions
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It depends on your circumstances. When deciding between a 2 year or 5 year fixed rate mortgage, you may want to consider:
- whether you want the option to change your deal in the next couple of years
- how long you want to stay in your property for
- how long you would prefer to have a fixed mortgage interest rate for.
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With a fixed rate, your mortgage interest rate won’t change for an agreed period. Rates and repayments with a variable mortgage can change throughout your term.
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Fixing your mortgage will depend on your situation and your preferences. For example if your current deal is ending. A fixed rate deal can help you avoid moving onto your lender’s SVR. You may also want a fixed rate to help you budget. This way you'll have a good idea of what you’ll pay each month.
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Yes, you can usually leave your fixed rate mortgage early. Keep in mind, this may mean you need to pay an early repayment charge.
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Yes, existing Lloyds Bank mortgage customers can switch to a fixed rate mortgage if their current deal is coming to an end. You’ll need to have your mortgage account number at hand. If you want to switch to a fixed deal during your agreed term, there may be fees for doing so. See if you can switch to a new deal.