The main reason for considering a fixed rate is the certainty that it provides. A Fixed Rate mortgage is considered by many as safe due to the monthly payments being fixed at a set amount and that are not affected by changes in interest rates.

With a fixed rate, in return for knowing that you will not face any increases in your monthly payments, you will not see any benefits from any rate reductions.

Fixed rate mortgages are ideal for first time buyers or those whose income/outgoings ratio requires careful budgeting to maintain affordability.

Two year fixed rate mortgages are usually among the most competitive mortgages on offer, but still give you the certainty that monthly payments will not rise for those two years.

Most fixed rate mortgages have redemption penalties payable during the term of the fixed rate. What looks like the cheapest deal initially may end up being the most expensive should your circumstances change.

Another consideration is the options available to you at the end of the fixed rate term. Most will usually revert to a variable rate mortgage, so length of term should be considered carefully.

Terms for fixed rate mortgages range from 12 months to 25 years (long term fixed rate), the latter being ideally suited to borrowers who intend to live in their property for the long term, and prefer the security of a fixed monthly mortgage payment.