1. Fixed Rate Mortgages
With a Fixed Rate Mortgage, your interest rate is locked in for a specific period, typically 2, 3, or 5 years with monthly repayments staying the same throughout this period. At the end of a fixed rate period, if you do not choose another fixed rate product, your mortgage will automatically revert to our variable rate.
- Budget certainty: You know exactly how much your mortgage will cost each month, making it easier to plan your household budget.
- Peace of mind: Protection from unexpected increases in your mortgage repayments if interest rates increase during this period.
- Overpayments: You can overpay up to 10% of your balance in each calendar year.
- Missing out on rate decreases: If market interest rates fall during your fixed rate period, your repayments will not reduce.
- Early repayment fees: If you wish to switch your mortgage product, or repay your mortgage in full before the end of your fixed rate period, you may incur an early repayment fee.
- Overpayment limitations: Overpayments are limited to 10% of the outstanding balance within any calendar year. Exceeding this limit may also trigger an early repayment charge.
2. Variable Rate Mortgages (currently not available from Revolut)
With a Variable Rate Mortgage, your interest rate can change at any time, in line with the Revolut Variable Rate Policy. This means your monthly repayments may go up or down.
- Benefit from rate decreases: If market interest rates decrease, your monthly mortgage payment may reduce, leading to potential savings.
- Unlimited overpayments: You have the flexibility to make unlimited overpayments without incurring any early repayment fees. This can be beneficial if you wish to reduce your mortgage term or total interest paid.
- No early repayment penalties: There are no early repayment fees if you decide to repay early.
- Exposure to rate increases: If market interest rates increase, your monthly repayments could increase. This can make it challenging to predict your future mortgage costs which may impact your budgeting.