20-year, 25-year, 30-year and 40-year fixed rate mortgages

A long term fixed rate mortgage may seem like a good idea if you’re settled in your home and don’t fancy dealing with interest rate fluctuations.

Unfortunately, there are no lenders in the UK offering fixed-rate mortgages for this long.

Nevertheless, there’s a growing range of 10-year fixed rate mortgages being made available. Those looking for a long-term fix might therefore want to consider locking down your interest for a decade.

Compare all your options, as some providers require a deposit of up to 50% for long-term fixed rate mortgages.

How do fixed rate mortgages work?

With a fixed rate mortgage, the interest rate you pay is locked over the duration of the fixed term. It means there’s no confusion surrounding what your monthly repayments will be over the length of the fixed term. This makes it easier to manage your household budget and save for larger long-term purchases. With other types of mortgage, such as tracker mortgages, the rate will fluctuate based on the Bank of England (BoE) base rate.

The downsides of longer-term fixed-rate mortgages

Being able to budget with confidence is great. So is having an interest rate that’s better than what’s available on the market.

What’s not so great is having to buy your way out (i.e. pay a penalty) if mortgage rates come down, and you realise you’d be better off switching. Letalone paying over the odds for a sustained period.

You’re also tied to the bank you opt for – so it may be worth looking at what their users say about them before committing.

Would UK homeowners recommend their mortgage provider to friends/family?

Frequently asked questions about fixed rate mortgages

• What does interest in advance mean?

  This is the opportunity to pay your interest for the year in advance. The rules recently changed surrounding the deduction of mortgage interest from rental income before tax, so seek input from an accountant if you’re planning to do this.

• Should I get a fixed or variable rate mortgage?

  This question depends on many variables, including your finances, lifestyle and what you plan to do with your mortgage in the future.

• Are rates going to rise or drop in the future?

  It’s impossible to accurately predict this, but brokers and economists may be able to provide an expert opinion.

• What is an offset mortgage and can I get one?

  An offset mortgage allows you to offset your savings against your mortgage interest. Some offset mortgages allow you to offset 100% of your savings, while others only let you offset a specific percentage. These are typically made available with fixed-rate mortgages.

Written by

Matthew Boyle

Publisher

Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio

Matthew's expertise

Matthew has written 285 Finder guides across topics including:

• Helping first-time buyers apply for a mortgage
• Comparing bank accounts and highlighting useful features
• Publishing easy-to-understand guides