Is it better to have a fixed rate or variable rate mortgage?

Is it better to have a fixed rate or variable rate mortgage?

When it comes to choosing which mortgage is right for you, the options can often seem overwhelming. Do you look for fixed rate deals, safe in the knowledge that you know how much you are paying each month? Or do you gamble on a variable rate in the hope that you can benefit from lower interest rates?

Fixed rate mortgages offer stability, meaning your payments remain the same regardless of market fluctuations. However, variable-rate mortgages are typically offered at a lower initial interest rate, but lenders can change these rates, significantly affecting your monthly payments.

There is no right or wrong answer, as both options (a fixed or variable mortgage) have pros and cons that must be considered carefully before making a decision. Ultimately, it’s essential to do some research and evaluate your own financial goals and circumstances to decide which type of mortgage best works for you.

So don’t be led up the garden path; let Bliss Financial guide you to securing the perfect mortgage.

What is the difference between a fixed rate mortgage and a variable rate mortgage?

A fixed rate mortgage means that your monthly repayments do not change for an agreed period of time. The interest rate remains the same throughout the fixed term of the mortgage.

When an interest rate is variable, it can go up or down at any given time, depending on what is happening in the wider economy. This can have an impact on your monthly mortgage repayments. Sometimes lenders will offer a discounted variable rate mortgage, which means they reduce the interest rate payable against the standard variable rate. Again this is only given for a set period of time.

At a glance: Fixed rate mortgages

A fixed rate mortgage will enable you to have stable mortgage payments for the length of your mortgage term. Most fixed rate mortgages have a set duration which is generally 2, 3, 5 and sometimes 10 years.

Who are they suitable for?

A fixed rate mortgage is suitable for risk-averse people who would prefer to know what they are paying each month on their mortgage costs. This is dependent upon personal circumstances, of course. Usually, a fixed rate mortgage is a good idea if you are worried about interest rates going upwards.

Eligibility criteria

When it comes to fixed rate mortgages, the eligibility criteria is the same as a variable rate mortgage deal. There will be a minimum lump sum deposit required and sometimes a minimum loan amount.

What are the pros and cons of a fixed rate mortgage?

A fixed rate mortgage has many positive benefits, such as giving peace of mind regarding wider economic changes that may impact interest rates.

A fixed rate mortgage will provide stability in terms of your monthly payments for a fixed period of time. As this means the mortgage rate will not change during the duration of your term, there are no worries about the impact this could have on your financial situation.

The potential drawbacks to fixed rate mortgages are that often, there will be early repayment charges applied if the mortgage is repaid during the fixed rate period. The mortgage lender applies these charges.

A fixed mortgage can also generally have a higher rate of interest than the rate payable on a standard variable rate mortgage. This is due to the stability and security gained from a fixed rate mortgage.

At a glance: Variable rate mortgage

Standard variable rate mortgages are generally known as a tracker rate or discounted rate mortgages.

These types of products are variable when it comes to the interest rate, which can move upwards or come downwards, usually depending on the lender’s standard variable rate or the bank of England’s base rate.

Who are they suitable for?

Standard variable mortgages are suitable for those that do not mind taking a risk. Generally, you would need to be prepared to pay more money monthly if interest rates did increase whilst also being comfortable that you may benefit monthly if interest rates were to come down.

Eligibility criteria

The eligibility criteria for variable-rate mortgages are similar to those for fixed rates. There is usually a minimum loan amount and a minimum deposit requirement.

What are the pros and cons of a variable rate mortgage?

A variable rate mortgage can be beneficial if interest rates remain low, as the cost saving is passed on to you via the interest rates moving downwards. However, if interest rates move upwards, then there is a risk that this could also be passed on, in which case your monthly payments would increase.

How can Bliss Financial Solutions help you?

Bliss Financial Solutions has many years of experience assessing personal circumstances to ascertain which product is the right one for our clients at any given time.

Contact us today to learn more about fixed and variable rate mortgages!

Picture of Amanda Marsden
Amanda Marsden

Amanda is the founder and owner of Bliss Financial. She has been helping clients with their mortgage and insurance needs for over 15 years. Her passion is to fully explore the options open to them and ensures the process is easy with no stress. She also specialises in helping clients invest in buy to let property and landlords.

Contact Amanda

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Reviews

Selected from a number online because they stated that they have experience working with people from the military. This was essential given how moving on assignment often can be a negative for many banks when it comes to lending. Amanda was excellent and the process was swift and easy. We had planned to visit face to face but the process was just as high quality over zoom and phone.
Richard S.
1719241519
Amanda is great, everything was explained clearly and always responsive to queries, would highly recommend.
Pavitar P.
1715942557
This is my second time remortgaging through Bliss and Amanda. The service provided has made my life stress free and Amanda was thorough with her research into what deal and term would be best for me based on economic uncertainty and where I am atthis point of my life.I'd not use any other mortgage broker ✨
Harriet L.
1714555801
Amanda was extremely knowledgeable and helpful from minute one. I am very grateful to her for diligently working within a fairly tight timeframe to identify and provide me with the right product.Her communication throughout was prompt and well-received. I look forward to using her services again.
James D.
1712577010
Excellent service. Fully deserving of 5 stars. Nothing to fault. Great communication and everything went through in time with no issues. Would highly recommend Amanda Marsden.
Luke H.
1711355993
Amanda was absolutely brilliant from start to finish. She helped us secure our forever home mortgageWould 100% recommend for anyone needing financial services of any kind!
James B.
1707399328
Absolutely perfect service from start to finish, no stress, no hassle can’t recommend enough. Thankyou
sarah W.
1707382538
We have used Amanda for many years. She knows exactly what she is talking about and offers the best advice. I cant recommend Amanda enough if you're thinking of getting a mortgage or going through a Re-Mortgage. She reassured us throughout the whole process and was in touch every step of the way. Thank you Amanda, here's to many more years.
David J.
1706516356
Amanda was amazingly helpful and made the whole process hassle free. Even when I changed my mind a few times nothing was a problem and the end result was exactly what I was looking for. I would highly recommend Amanda and the team
Atha D.
1705414093
We used Amanda a few years ago for our first mortgage. She was an absolute hero for us. She sat us down and explained everything thoroughly putting all out worries at ease as first time buyers. We had issues with our chain which meant our mortgage offer lapsed and Amanda was there every step of the way right through to the day we moved in. Due to remortgage in the next year or so and I will always go back to Amanda.
Anya K.
1705410372
Once again very helpful and prompt in helping us with remortgaging our property, highly recommended
Natasha G.
1704962573
Bliss WILL get you the best mortgage solution possible. The best mortgage broker around!!
michaela M.
1704403292
Amanda was absolutely brilliant from start to finish. She helped me secure my first mortgage and also helped with organising the best deals on life and home insurance for my house. Would 100% recommend for anyone needing financial services of any kind!
Nathan C.
1702901651
We specifically selected Bliss as financial advisors for our mortgage, as we'd read great reviews from other first time buyers. Amanda was so welcoming and helpful, introducing us to the whole process. We actually went to her thinking we were fish out of water, and wanting to but not expecting to but for a few years, just wanting to get our heads around it. However everything felt easy, quick and well explained and we were accepted for a within approx 2 months of starting our search. Amanda has been amazing throughout the entire process - even personalising the way she presented documents to us to suit our styles (me, needing to talk everything out and my partner more graphs and charts!). Evening appointments were organised to work around our work schedules. She was in constant communication with all stakeholders, chasing things up for us and since moving, also supporting with insurances. I'd highly recommend Bliss, and specifically Amanda for any financial advisory services however particularly first time buyers, as no question feels like a silly question. For future purchases, selling, and any other financial services - we will definitely return to Bliss.
Amber B.
1700778474
Great service. Professional, friendly and efficient. Amanda did a great job in advising me and then finding and securing the best mortgage to suit my situation
Ed T.
1693852746
Absolutely amazing service, couldn't have received any better. Very friendly and quick at replying to all enquiries. Very understanding of our circumstances which were difficult but still got us everything we needed for our new house. Thank you again Amanda, will be recommended you to everyone who needs a mortgage broker ☺️
Stacey G.
1693568255
Amanda helped us to secure our first mortgage. She was on hand for support all the way through the process and very helpful in explaining things in a more simple way to help us to understand. She kept in contact with us regularly throughout the process and really made us feel at ease. We cannot thank Amanda enough for her support and help.
Annise M.
1693395944
I came across Bliss financial solutions by google search when desperately trying to find a mortgage advisor who could do the impossible (secure a DiP quickly, that met my difficult short term self employment circumstances).Amanda from Bliss has been a pleasure to work with. The perfect balance of professional and friendly, incredibly organised and certainly not deterred by a challenge. I’m really grateful for the time and effort she put into my case to allow me to secure the house I wanted within the mandated timeframe. Thank you so much Amanda and Bliss for allowing us to get our new home 💜
heather U.
1690804558
I just want to say how amazing Amanda at Bliss financial is!!. My partner and I were looking at buying a shared ownership prooerty and everything started happening very quickly ... but Amanda just took over from the start and literally kept me at ease the whole way . Herprofessionalism throughout was second to none and helped with every aspect of the process. Thanks to Amanda we now have the most beautiful home and we will be forever grateful for everything she has done for us. I would 100% recommend Bliss Financial.
charlotte C.
1688067705
Excellent service. Amanda really took the stress out of remortgaging for us. Highly recommended
Amy G.
1685705446
Switching mortgages has always been a frustrating and time consuming experience but using Bliss made the process seamless and most importantly stress free! They were excellent and I would highly recommend their services.
Neil G.
1685702436
Amanda has been totally invaluable through our first home buying journey. Always on hand to answer the hundreds of questions with her excellent knowledge and guidance.I would absolutely recommend Bliss Financial Services.
Matt D.
1680857625
We have been in our new house for nearly 2 months now all thanks to Bliss Financial Solutions, Amy was amazing sorting our new mortgage out and talking us through everything we needed to know. Very smooth process with good communications. Thank you very much. 🙂
Donna G.
1679681542
Exceptional customer service, professionalism and market knowledge.
George R.
1677842342
Really excellent & supportive service from start to finish throughout mortgage process, from initial enquiry through to successful completion, friendly, knowledgeable and always happy to take time to answer any questions - great organisation.
Nella F.
1676471297
Brilliant lady Amanda, always positive knowledgeable and helpful. Have no doubts in recommending her and Bliss Financial Solutions
Jeff W.
1673889689
Very prompt and professional team. Helped us out no end! Highly recommended
Wayne C.
1672850939
I would like to thank Bliss Financial Solutions for amazing, professional and swift responses during the process of my first home purchase.It has been an absolute pleasure each time I have met you and will 100% have no hesitation for contacting you again for future requirements and highly recommending you.
Paul K.
1671467114
We have recently used Amy at Bliss to help us get a mortgage. After having a stressful time at high street banks and other mortgage brokers, we contacted Amy for help. Amy was absolutely excellent and the work she does is outstanding. Amy went above and beyond and managed to find us a mortgage in a matter of days. Throughout the whole process Amy kept us up to date and managed the mortgage application seamlessly despite a stressful time with other companies. I would like to express my many thanks to Amy and the team at Bliss for being so excellent and thanks to them we now have the keys to our new home.
Alicia
1671011325
My experience with Bliss Financial was excellent, everyone went above and beyond. Provided the best advice and more. Our mortgage was sort with out any stress. I will continue recommending to friends a family looking for mortgage advice.
emma W.
1670342174
First class customer service, highly recommend Bliss Financial Solutions LTD to anyone that values a professional, efficient and personal approach. Being first time buyer my partner and I had very limited knowledge around mortgages and all things connected. Amanda and her team went above and beyond to ensure we understood everything and provided advice when we had any questions with immediate response. Bliss financial limited we thank-you kindly for making the whole mortgage process so easy, you took all the strain off us especially need due to the birth of our daughter 3 weeks ago you made the mortgage process easy and hassle free. I will definitely be a customer for life and if there is anyway I can share your company’s profile on social media please let me know as I would love to recommend your service to others.Many thanks Melissa Hodgson, Andrew and Eloise - three very happy customers 😊
Melissa H.
1670009039
Amy and the team were absolutely amazing! Nothing was too big. We didn't really know much about the process and Amy explained everything so we fully understood! We couldn't have done it without the team 100% would recommend to anyone! Thank you all so much ❤️
Rebekah F.
1669569495
We used Bliss to re morgage our property. Amy was absolutely fantastic, made everything feel really easy, she was clear in all her explanations, open and honest with setting expectations, and really knowledgeable. The whole process was really smooth. We also discussed life insurance which was something of a priority giving we had just had a little boy recently. Amazing service. Would highly recommend. We will definitely be using again for any future mortgage or insurance needs.
Lauren A.
1668630784
Excellent service, they really came to the rescue after being messed about by our current lender, amazing absolutely amazing. Just wish we went to them sooner would have saved a big headache 😃
Michael C.
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Efficient and friendly. The team helped source the most appropriate mortgage for us at a very busy and pressured time for interest rates and timeframes. They were very helpful in expediting the completion when our solicitors were holding up proceedings. The little gift afterwards was much appreciated also. Would recommend.
Kirsty T.
1667838229
Bliss Financials was a vital part of my journey to home ownership in the UK. They always gave personalized yet professional advice and were always accessible and responsive all through the process. They were very thorough, transparent and client centered; offered and discussed all the available options to enable me make an informed choice. I would totally and wholeheartedly recommend their services and I am very grateful to Amy who handled most of the process as well as Amanda and Sophie. Great team/firm!
Nwosa C.
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I would like to praise the excellent service of the Bliss Financial Solutions LTD.I have a brilliant experience with this company. I was buying a house for the first time and Bliss Financial advised me on every step of the process (mortgage, insurance), offering me suitable options that I could choose from. I always got great offers and still was in control.All members of the team (Amy, Sophie, Amanda) are brilliant, very professional, friendly and responsive.I am very grateful to Amy (my consultant) as she did help me very much throughout the process, nothing was a problem,I received responses straight away and she also prompted other parties to act swiftly (lender, insurance companies, solicitor, etc.).If I need mortgage or insurance in future, I will definitely ask Bliss Financial for help again.
Michal P.
1667551722
I am now on my second mortgage which was arranged using Bliss. What an outstanding service. From start to finish the Bliss team were great in answering queries that I had. They even pushed to get me an extension to my offer seeing me secure a great rate before the recent rises. This certainly helped me secure my dream home. I would recommend Bliss to anyone who is after a professional and personable mortgage advisor.
Dean
1667510141
Amanda worked extremely hard and was really efficient is securing a fixed deal for me at a time when rates were being removed across the board. I would recommend them to anyone.
Andrew M.
1667468174
Excellent from start to finish. Every decision and option were made clear to us about the implications and any questions we had were answered in a timely manner, making remortgaging easier than I imagined it would be. Thank you to Bliss Financial Solutions for excellent service and attention to personal details that really made us feel like our priorities were put first. We will use again at our next remortgage and would recommend to anyone.
Melissa B.
1667381063
Excellent company, fast and responsive and a professional outfitI appreciate Amy’s swift advice on a deal to secure a good rate 12hrs before the rate changed
Adam L.
1667320388
What a fantastic service. I contacted Amanda via a friend recommendation. She was friendly and helpful. She passed me to Amy who was my advisor for the whole process.As a first time buyer, I was like a rabbit in the headlights. But Amy reassured me and made the whole thing a breeze, with regular contact and updates along the way.Thank you to you all.Highly recommend 😁See you when it's time to remortgage 😉
Steven R.
1666698830
We have used Bliss/Amanda for a number of mortgages now and the service has always been second to none!We have had complicated financial situations that the Bliss team have used their extensive knowledge to support and ensure we receive the best product for us.We always recommend Bliss to all our friends and family!Thank you to Amanda, Amy and Sophie
Samantha B.
1665563361
The staff are amazing and very helpful throughout the whole process, the rates are very competitive and the after sales service is second to none, I would highly recommend Bliss Financial to anyone.MarkAspire Property Rentals
Mark L.
1665401285
Any Lyons found us an excellent mortgage deal and then helped us through a long complex legal process regarding the house. She was there for us all the way through keeping us informed and chasing up when there were delays, Thank you Amy and her team.
Ken W.
1665142125
Amy has been amazing from the start of our process as first time buyers until completion. We had a few delays along the way due to waiting on a new build but Any was there to guide us through every step of the way to help us rearrange another mortgage and kept us regularly updated on the process. I have already recommended her to friends and family and wouldn’t hesitate to use her again when we remortgage.
Melissa N.
1665048918
Really happy with the service from Amy and Bliss Financial Solutions - Amy made sure everything was as straight forward as possible, was super communicative and really easy to deal with. Would not hesitate to recommend them.
Rachael G.
1664269233
Amanda was very helpful. Gave advice over a number of options for my situation. Many other companies didn't even bother calling me back. Will definitely go back to Bliss again in the future.
Lesley C.
1663770944
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