Should I Get a Two-Year or Five-Year Fixed Rate Mortgage?
Quick answer: Neither a two-year nor a five-year fixed-rate mortgage is better for everyone. A two-year fix offers earlier flexibility to switch, while a five-year fix gives longer payment certainty. Compare available rates, fees, early repayment charges and eligibility alongside your budget and future plans.
Choosing a 2-year or 5-year fixed rate mortgage affects how long your rate stays the same and when you’ll need to review your deal. If you’re thinking about how long you should fix your mortgage for, the answer depends on your circumstances, available rates and eligibility.
Should I fix my mortgage for 2 or 5 years?
A two-year fix lets you review your options sooner. A five-year fix keeps your agreed rate for longer. Compare the trade-offs before deciding which length of fix fits your plans.
| Compare | Two-year fix | Five-year fix |
|---|---|---|
| Payment certainty | For two years | For five years |
| Chance to switch | Sooner | Later |
| Future rate changes | You face new rates sooner | Your agreed rate lasts longer |
| Leaving early | Charges may apply | Charges may apply, and for longer |
| Changing circumstances | Earlier chance to switch | Less flexibility for longer |
| Reviewing your mortgage | You’ll need to review your options sooner, even if circumstances haven’t changed | Even if circumstances change, you’ll most likely have to review your options later, or face charges |
Read more about two-year fixed-rate mortgages and five-year fixed-rate mortgages.
How long should I fix my mortgage for?
How long to fix a mortgage for depends on how much certainty and flexibility you want. Compare the rate, fees, early repayment charges, portability (whether your lender may let you transfer your mortgage deal to a new property), and whether your circumstances may change.
To help you decide, you can ask yourself these questions:
How important is payment stability to you?
A longer fix gives you more certainty over monthly repayments. A shorter fix might suit you if you’re comfortable reviewing your mortgage sooner and accepting that rates could be higher or lower then.
What are mortgage rates doing?
Mortgage rates change, and shorter or longer fixes can be cheaper at different times. Look at the interest rates available and compare current deals rather than assuming one term has the lowest rate. Read our guide to mortgage interest rates or MoneyHelper’s mortgage interest rate options.
Could your circumstances change?
Think about plans to move home, change jobs or repay a large amount. Leaving early could mean an early repayment charge. If you might move, check whether the mortgage is portable.
Which mortgages are you eligible for?
Lenders consider affordability, your deposit or loan-to-value (LTV) ratio, credit history and their own criteria. Your Experian Credit Score can help you understand how lenders may view you. Read more about credit and mortgages.
Compare mortgages with Experian.
*We’re a credit broker, not a lender.
What are the risks of fixing your mortgage for longer or shorter?
Risks of a two-year fix
- Rates could be higher when your fix ends.
- You’ll need to review or remortgage sooner and could face new fees.
- You have less long-term payment certainty – as your payments might go up or down in two years.
Risks of a five-year fix
- You could stay on a higher rate even if market rates fall.
- Leaving early might mean paying an early repayment charge.
- A longer fix gives you less flexibility if your circumstances change.
How do mortgage fixed terms work?
Your mortgage term is the total time you agree to repay the mortgage. The fixed-rate period is the shorter time your lender keeps your interest rate at the agreed level. Your monthly repayment stays fixed during that period, subject to your mortgage terms.
Read more about fixed-rate mortgages.
What happens when a fixed-rate mortgage ends?
Your lender will normally move you to its standard variable rate (SVR) unless you arrange another deal. Your payments could change, so you can compare options before the fix ends. Find out more about what happens when a fixed-rate mortgage ends.
Can you get a 10-year mortgage?
Long term fixed rate mortgages, including 10-year fixes, can be available sometimes. They offer longer payment certainty but less flexibility, and you may face early repayment charges if you leave during the fixed period.
Compare fixed-rate mortgages with Experian
Compare the deals you’re eligible for rather than choosing on term length alone. Look at rates, fees, early repayment charges and portability.
*We’re a credit broker, not a lender.
FAQs
How long before my fixed rate ends can I remortgage?
You can often start comparing or arranging a new mortgage several months before your fix ends. Exact timing varies by lender. Read more about preparing for the end of your fixed-rate mortgage.
What’s the longest fixed-rate mortgage you can get?
The longest fixed-rate mortgage available depends on the lender and market conditions. Longer fixes, including 10-year deals, can be available.
Should I get a three or five-year fixed mortgage?
For a 3 or 5-year fixed mortgage, compare current rates, fees, payment certainty, flexibility, early repayment charges and how your circumstances could change.
How long should I fix my mortgage for if I’m a first-time buyer?
No single fixed period suits every first-time buyer. Consider your budget, deposit or LTV, eligibility, possible changes in your circumstances and available deals. Read more about first-time buyer mortgages.