Fixed vs variable rates
Most UK buyers fix their rate for 2–5 years for payment certainty, then remortgage. After the fix ends you move to the lender’s higher standard variable rate unless you switch, so it pays to shop around near the end of the deal.
What this excludes
This is the capital & interest repayment only. It excludes buildings insurance, any product/arrangement fees and ground rent or service charges on leasehold properties.
Frequently asked questions
Is this repayment or interest-only?
Repayment (capital & interest), where the balance reaches zero at the end of the term. Interest-only payments would be lower but leave the full balance outstanding.
How much does the term change things?
A longer term lowers the monthly payment but increases total interest. Shortening from 30 to 25 years raises the payment modestly but saves significantly overall.