Long-term fixed rate mortgages – busting the myths

We’re shining a light on some of the myths we’ve come across 25 September 2023 by Gemma Reed

The subject of mortgages can be confusing. There are so many on offer and it may be hard to know what’s right for you.

A popular choice is a fixed rate mortgage. This means your monthly payments are guaranteed for a set amount of time. If you like the idea of a fixed rate mortgage, then you have a decision to make. How long do you want to fix your payment for? Of course, there are different options available in the market. You can choose to fix the rate over a shorter term (usually between 2 and 5 years) or a longer term (which could be up to 40 years).

In the UK, there aren’t many longer-term fixed rates out there. We’re changing that with the Perenna mortgage.

Like with anything new, we know it can take time to feel comfortable with a new offering. We appreciate that not everyone fully understands how long-term fixed rates can benefit them. So, we think it’s time to shine a light on some of the myths we’ve come across and show how Perenna’s innovative product can address these. Here are just some of the comments we’ve come across…


Myth 1: They’re not flexible


We say:
Typically, longer term fixed rates offered in the UK have not given borrowers the flexibility they may want. Ten-year fixed rates may come with long early repayment charges which can restrict borrowers.

However, a Perenna mortgage is different. Our product combines long term stability with flexibility. You’ll know exactly what you must pay each month for your whole mortgage term. No teaser rates, no rising payments, no shocks.

Plus, our mortgages are designed to fit around your life. That’s why you can take your mortgage with you when you move home or change your mortgage to another lender or product without charge, after 5 years.


Myth 2: Not many people are interested


We say:
Thousands of people on our waitlist have shown that they are interested. Plus, millions of people across US and Europe already benefit from products like this.

So, why shouldn’t these mortgages work in the UK? Our mortgages have been designed to help:

  • first-time buyers looking to borrow a little bit more
  • homeowners seeking stability when remortgaging
  • later life borrowers wanting to release equity from their property


Myth 3: They’re expensive


We say:
You can’t compare apples and oranges.

Whilst a Perenna mortgage may have a higher rate than some other ‘teaser’ rates on offer, you need to think about how they may compare longer term. For example, if you’re thinking about fixing your rate over a short term, you’ll need to consider what happens when that deal comes to an end. Will you be able to afford a new mortgage if rates rise or your circumstances change? We want to remove this risk.

We don’t think homeowners should have to worry about rates changing or being denied access to mortgage products in the future. That’s where a Perenna mortgage comes in. By fixing your rate for up to 40 years, you’ll know exactly what you must pay each month for your whole mortgage. Can you put a price on peace of mind?


Myth 4: Rates will come down so no need to fix for longer


We say:
Everyone loves a good deal. But is it wise to hazard a guess on what could be your biggest financial decision? Instead of trying to predict the future, you will know exactly what you’ll pay each month with a Perenna mortgage. This puts you back in control of your finances so that you can plan for your future.

Yes, rates could come down, or your circumstances could change. And that’s why our product comes with flexibility as standard. If you want to change, that’s no problem. You can do so without charge after 5 years.


Could a Perenna mortgage be for you?

If you’d like to find out how much you could borrow, why not use our mortgage calculator. It’s completely confidential, does not affect your credit score and should only take a few minutes.



You could lose your home if you don’t keep up your mortgage repayments.