Fixed vs variable rates
Most UK buyers fix their rate for 2โ5 years for payment certainty, then remortgage. After the fix ends you move to the lenderโs 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.
Deposit, LTV and the rate youโre offered
Your loan-to-value (LTV) โ the loan as a percentage of the property price โ has a big effect on the rate. A 10% deposit means 90% LTV and pricier deals; reaching a 25% deposit (75% LTV) or 40% (60% LTV) typically unlocks the lowest rates. Remember the upfront costs too: Stamp Duty Land Tax in England, plus valuation, legal and any arrangement fees, all sit on top of the deposit and arenโt part of this monthly figure.