You should be realistic about applying for credit in terms of whether you are likely to be successful in applying for it. The best preparation is to find out what your recent credit score is and to check your recent credit report.

Every time you fail in an application for credit, it negatively impacts your credit score – it's worth waiting 3 months after a failed application before you apply for credit again.

Your repayments for a fixed rate mortgage are calculated according to an agreed interest rate charged on your loan and the terms operate for an agreed fixed period.

People take up this kind of mortgage because it means the repayment you make is the same each month for the period of the fix, which offers security and peace of mind in an uncertain world. If the Bank of England were suddenly to raise its rates, you would gain by not having to increase your repayment sums, for example.

The interest rate may be more expensive, however, than a variable rate offered at the start of the fixed period. Additionally, if you wish to leave the arrangement, you normally have to pay a very large early repayment charge to your lender. However, when you come to the end of the fixed period, you can then set up another fixed term – you could approach another lender offering a more competitive rate for this – or you can opt to stay on the lender's standard variable rate (SVR) where payments can move up and down but you can change out of this at any time without penalty.