LENDING LORDS GUIDES

Fixed or variable: what to consider.

Compare the complete offer, including what happens after an initial rate period ends.

Understand the starting period

A fixed rate generally stays unchanged for its specified period. Ask when that period ends and how the next rate is calculated.

Understand how a variable rate moves

A variable rate may follow a reference rate plus a lender margin. Ask about reset frequency, any minimum rate and how a change affects repayments.

Compare more than the headline rate

Review the remaining term, fees, insurance, early settlement conditions and total cost. A smaller monthly repayment can still cost more overall if the term is extended.

Ask for a stress illustration

Look at repayments if rates rise. Request the lender’s Key Facts Statement and a personalised illustration before deciding. Islamic finance requires its own product-specific contractual explanation.

General information only; availability and terms depend on the lender and your circumstances.