We don't like lock-ins

Talk of rising interest rates is turning thoughts to fixed rates to insulate borrowers from rate rises. Fixed rates are still at low levels despite their recent increases (as mentioned above) but once you've decided to fix, the next decision is for how long.

Lock-ins can be for between one and 25 years. However, redemption penalties can amount to thousands of pounds and hinder options further down the line.

If you move home during the penalty period the deal can be carried to the new property but there is no guarantee the lender will offer any additional funds, potentially resulting in payment of the penalty.

It is best not to tie yourself in for too long and certainly not beyond any foreseeable change of circumstances.