Finance Glossary
Fixed Rate
An interest rate that stays the same for the full term of the loan, meaning your monthly payments will not change regardless of movements in the Bank of England base rate or market interest rates. Fixed-rate loans offer predictability and budgeting certainty. Most short-term personal loans in the UK are fixed rate.
Example
A fixed-rate loan at 24.9% APR over 24 months means your monthly payment is identical every month — it cannot rise even if the Bank of England raises rates.
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