In a fixed-rate mortgage arrangement, the interest rate is fixed for a pre-determined period of time, which can be for up to 5 years or more. The monthly mortgage payment will not change, no matter whether the Bank of England or the mortgage provider raises or reduces their interest rates. For the borrower, the advantage of a fixed rate deal is that he or she knows exactly how much their monthly repayment is going to be each month and for how long.

In some instances, the interest rate charged on a fixed-rate mortgage can be higher than the interest rates charged for other types of mortgages. The borrower may also have to pay an arrangement fee to set up a fixed-rate deal.

Usually, once a fixed rate arrangement comes to an end, the lender’s standard variable rate applies.

Fixed-rate mortgages can be arranged by Blestium Financial Services, which is a trading name of Martin Newell who is an appointed representative of The Openwork Partnership which is authorised and regulated by the Financial Conduct Authority.