Fixed versus variable: how to think about it

Fixing a rate removes uncertainty for a period. It also removes flexibility, and can introduce break costs if circumstances change.

What fixing gives you

Repayment certainty for the fixed term, which can matter a great deal on a tight budget.

What it costs you

Limits on extra repayments, usually no offset account against the fixed portion, and potential break costs if you sell or refinance early. Break costs are not a penalty — they reflect the lender's own funding position and can be substantial.

Splitting

Many borrowers fix part of the loan and leave the rest variable, which balances certainty against flexibility. Whether that suits you depends on your plans over the fixed period.