Fixed Rate Loans
Looking for a fixed rate loan that isn't a mortgage? Good luck!
With the exception of mortgages, fixed rate loans are as rare as hens' teeth – and even fixed rate mortgages are only fixed for a short period, usually 3 or 5 years. That doesn't mean fixed rate loans aren't available, but you'll find that the minimum loan amount is usually very high.
Fixed rate loans are exceptionally rare outside the world of mortgages – and even fixed rate mortgages are only fixed for a limited period, usually 3 or 5 years. Some lenders do provide fixed rate loans, but they're usually for very large amounts and there can be nasty penalties if you repay the loan early.
One lender that does offer fixed rate loans is the Royal Bank of Scotland, and its offering is fairly typical. You can't borrow less than £26,000, there are hefty penalties for early repayment, and while the maximum loan period is 30 years you can only fix the interest rate for up to 10 years.
Other lenders offer simpler fixed rate loans, but again there are conditions attached. The Britannia Building Society offers fixed rate loans to customers who already have a mortgage with the society, but again the fixed rate period is fairly short: from 2 to 10 years. The longer the fixed rate period, the higher the APR; at the time of writing, the 2 year fixed rate has an APR of 5.2% and the 10 year fixed rate has an APR of 5.9%.
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