Fixed rate mortgages are changing fast – and mostly for the better. Today you have more choice of rate, term and lender than ever before. Experts say you are also less likely to be trapped in an inflexible deal with no way to reduce your payments if interest rates go against you. It’s all good news for anyone stretching to borrow a lot of money in what looks like an increasingly uncertain economic climate. But there are some clouds on the horizon, not least in the form of ever higher application fees. So read on if you think a fixed rate mortgage might be for you. Here’s all the background you need – plus our independent analysis of the latest trends in the fixed rate mortgage market.

The key selling point of a fixed rate mortgage has always been payment security. You know that the rate you will pay for your mortgage will stay the same for the pre-agreed term, normally two, five or ten years. So whatever else happens to interest rates and the economy your monthly mortgage payments won’t change. This is what makes fixes such good choices for first-time buyers or anyone else stretching to climb up the housing ladder. ‘If your mortgage payments are at the upper limit of what you can afford each month then you should always at least consider taking out a fix,’ says Nick Gardener of broker Chase de Vere Mortgage Management in London. ‘Fixes are also good for people who aren’t sure exactly how much home ownership is going to cost them and want at least one of their new monthly bills to be a known quantity.’