How do mortgages work?

[Howdoesthisworknow]

This is probably a question I should know the answer to. When you take a mortgage out and you pay your monthly repayment, is that amount just for the term of the fixed rate or is it the amount for the life of the mortgage? What happens when you renew it?

When you take your mortgage out, your mortgage advisor will explain whether you’re on for example a 2/5/10 year fixed rate, it all depends what’s available on the market and what they recommend based on your budget.
Then 6 months before your fixed rate comes to an end you can shop around again for a new deal and get that in place before your old one ends. You can either stay with your current provider and switch deals or do a new mortgage application with a new bank and swap.

Yes if you are in a fixed rate, the monthly amount will just be for the term of the fixed rate. (2 years/5 years etc.) Usually, you then either refix to a different rate or go into the SVR which is generally a lot more.