UK Mortgage Centre: Should I Fix My Mortgage?

Should I Fix My Mortgage? – written by our partners at the UK Mortgage Centre.


The UK has seen 14 executive base rate rises since 2021. We have entered a cost-of-living crisis and seen the housing market fluctuate more than ever. Homeowners across the country have been faced with the daunting decision of whether to fix their mortgage or not.

The prospect of a mortgage rate increase of £500 can be alarming, causing many to ponder the best course of action to secure their financial stability.

In this blog, we will delve into the current state of the UK housing market, the impact of changing base rates on mortgages, and the pros and cons of fixing your mortgage to help you make an informed decision.


The Current Market and Base Rate Rises

Let’s start with the base rate. The base rate is the interest rate set by the Bank of England for lending to other banks and is generally used by banks to benchmark their interest rates.

Since 2021, the Bank of England has increased the base rate 14 times in a row, now peaking at 5.25% (for now).

Despite the increase of the base rate keeping the UK out of a recession, the UK is still facing a cost-of-living crisis. For many, the increase of monthly mortgage repayments means they are having to rethink their budget and ‘shop savvy’ for new mortgage deals.

The average fixed rate deal is set to remain above 4% until 2026.  


Should You Fix?

A fixed-rate mortgage is a mortgage loan where the interest rate remains the same throughout the term of the loan, as opposed to loans where the interest rate may adjust.

If you find yourself in a situation where your mortgage repayments are increasing by £500, you may be prompted to look at fixing your mortgage deal and securing a better rate.

Let’s look at some of the pros and cons of a fixed rate mortgage to help you decide!


Pros of Fixing Your Mortgage:

  • Certainty and stability: By fixing your mortgage, you gain peace of mind knowing that your monthly repayments will remain constant for the fixed term. This stability can help you budget and plan your finances more effectively.
  • Protection against rate increases: As the base rate fluctuates, your fixed mortgage rate remains unaffected, safeguarding you from potential payment shocks.
  • Long-term planning: If you intend to stay in your current property for several years, fixing your mortgage can provide financial security over an extended period.


Cons of Fixing Your Mortgage:

  • Limited flexibility: Fixing your mortgage ties you to a specific interest rate and term, making it challenging to benefit from potential rate reductions during the fixed period.
  • Early repayment charges: If you choose to sell your property or refinance before the fixed term expires, you may incur early repayment charges, which can be substantial.

How We Can Support and Help You Find a Solution

Our team are experts at what they do. Here’s what we’ll do:

We’ll take some basic information from you and assign a dedicated adviser and case manager to you. Our team will work to understand your financial position, your affordability, and let you know the most suitable deals for you.

We will support you step by step, making sure you understand what’s going on at all times.

The last thing you need is to start searching online late at night for which deal might be the best for your next mortgage, or if your income still stacks up the way it should in the affordability calculators.

That’s why we’re here, to do all the heavy lifting for you and see you comfortably through the process.


Contact us today and see how we can help you!

01925 573328

*UK Mortgage Centre is a Trading Style of The UK Mortgage Centre Group. The UK Mortgage Centre Group is authorised and regulated by the Financial Conduct Authority – FRN 826982. Registered in England & Wales: 11614569.

**As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages. The Financial Conduct Authority does not regulate will writing and taxation and trust advice.

***You may be charged a fee, starting from £345, for our advice given. Your dedicated advisor will discuss this further on your free initial phone call.


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