5 year fixed mortgages
Compare our best 5 year fixed mortgages. Discover: what is a 5 year fixed rate mortgage, and how do you find the best 5 year fixed mortgage?
What is a 5 year fixed rate mortgage?
With a 5 year fixed rate mortgage, you’ll pay the same interest rate on your mortgage for a fixed period of 5 years.
This means your monthly repayment will not change for 5 years.
You can also get fixed rates for longer or shorter periods of time, such as 2 year fixed or 10 year fixed.
Should I get a 5 year fixed rate mortgage
Choosing a 5 year fixed rate means you can be sure your mortgage payments will stay the same for 5 years.
However, this could still end up being more expensive than opting for a shorter fixed term or a variable rate mortgage.
you pay the same rate of interest for 5 years
you get financial certainty about what you have to pay for your mortgage every month
you won’t be affected by any increase to the Bank of England base rate during that 5 year term
5 year fixes can have more expensive upfront fees
5 year fixes can have larger early repayment charges, which might outweigh any savings you could make if you decide to switch deals or move house
if interest rates drop you will not benefit from a lower rate
5 or 2 year fixed rate mortgage
2 year fixes usually have lower interest rates than 5 year fixes, but in recent years the gap between the two options has narrowed.
In July 2019 the average 5 year fixed rate was 1.93%. The average 2 year fixed rate was 1.61% for the same month.
3 years later, things have changed. In July 2022, the average 5 year fixed rate stood at 3.45%, while the average 2 year fixed rate for July 2022 was 3.51%.¹
For those looking to fix for 5 years, this is good news. It means you can fix your mortgage for a longer term without paying higher interest.
Keep in mind that interest rates can and do fluctuate.
5 or 10 year fixed rate mortgage
When deciding between a 5 or a 10 year fixed rate there are several things you should think about.
you want more stability than 2 years but are not sure you’ll be living in the same property for more than 5 years
you think your financial circumstances could fluctuate
you think you may wish to remortgage after 5 years
you plan on staying in the same property for a long period of time
you don’t think your circumstances will change much in the 10 years fixed period
you want the security of a steady rate for 10 years
Compare our best 5 year fixed mortgage deals
Compare 12,000 deals from 90 lenders and one of our advisers can check whether you're eligible for the 5 year fixed rate mortgage deals you find. Your home may be repossessed if you do not keep up repayments on your mortgage.
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Get the best 5 year fixed rate mortgage
To get the best 5 year fixed rate mortgage you should look out for all the fees and expenses that may come with it.
To keep your monthly mortgage payment costs down, choose a deal with lower interest rates.
Putting down a larger deposit is the best way to get access to the lowest interest rates. So think about saving a bit more for a bit longer before looking for a mortgage.
Low interest rates are great, but you also need to make sure you don’t ignore high early repayment fees or setup fees.
These could come to thousands of pounds, so check with a broker who can help you source a suitable deal. They’ll be able to inform you along the way so you do not get caught off guard by fees in the future.
If you want to avoid early repayment charges you should keep an eye out for mortgage deals that are portable.
This way you have the option of moving your mortgage deal to a new property rather than paying any ERCs.
Compare different deals to find the 5 year fix that best suits you and your needs.
Where to go from here
Is a 10 year fixed rate a good idea?
Find out who could benefit from a 10 year fix in this guide
Read our guideDiscover more about remortgaging
Everything you need to know in our remortgage guide
Remortgaging explained
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Your home could be repossessed if you don't keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
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Sources
¹ Bank of England data