Your interest rate stays the same for a set period (typically 2, 3, 5, or 10 years), providing predictable monthly payments regardless of Bank of England base rate changes.
Commonly chosen by:
Those who value payment certainty and want protection from rate rises
Interest rate can change during your mortgage term. Includes standard variable rate (SVR), tracker mortgages, and discount mortgages.
Commonly chosen by:
Those who can afford payment fluctuations and want flexibility
Interest rate tracks the Bank of England base rate, usually at a set margin above it. Payments go up or down when the base rate changes.
Commonly chosen by:
Those who want to benefit from base rate decreases
You only pay the interest each month, not the capital. You'll need a repayment strategy to pay off the loan amount at the end of the term.
Commonly chosen by:
Buy-to-let investors or those with clear repayment plans