Lending Tools
Fix short and re-fix later, or lock in for longer? See the rate you would need at the re-fix for both to cost the same.
Use rates you could actually get. The break-even rate does not change with the amount.
Break-even rate
Enter a rate for both terms.
How it is worked out
Example rates only, not current rates.
The break-even is a yardstick, not a forecast. It tells you how far rates would have to move before the longer fix came out ahead, so you can judge whether that seems likely.
It works on the full amount with no repayments taken off, so you can check it by hand. On a full principal and interest schedule, the answer usually moves by a few hundredths of a percent.
A longer fix holds your payment steady for longer. A shorter one comes up for review sooner, when you can make changes without a break fee. What suits you depends on more than this number.
