What each one means
A fixed rate stays the same for the life of the loan. Your payment on the final month is the payment you agreed on day one. A variable rate can move, which means your payment can move with it.
The question is not which is cheaper
Nobody can reliably tell you where rates will be in three years. The useful question is different: if my payment rose by a fifth, would I still be comfortable?
If the answer is yes, a variable rate is a reasonable risk to take. If the answer is no, the certainty of a fixed rate is worth paying for, even where it starts slightly higher.
What a fixed rate really buys
It buys planning. You can set a standing order, build the payment into your monthly budget, and forget about it. For anyone on a tight or predictable income, that is often worth more than a small saving that might not materialise.
What we offer
Our loan products are advertised with a fixed rate for the agreed term, so the figure quoted at application is the figure you pay. The rate and term are shown on each product page and update whenever our published rates change.
Compare products and see your repayment before you commit.
