Five-year fixed-rate mortgages

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What is a five-year fixed-rate mortgage?

It’s when the interest rate that you pay on your mortgage is set for five years. This means that your mortgage repayments will remain unchanged for the entire five years.

After which, you’ll be moved to the lender’s standard variable rate (SVR). This is usually higher, so you’ll want to consider remortgaging before this happens.

Couple unpacking boxes after moving into house

What are the advantages of a five-year fixed-rate mortgage?

It’s important to consider the pros and cons of this type of mortgage before applying.

Here are the advantages:

  • You’ll be protected from having to pay more if interest rates increase
  • Knowing how much you must pay each month can help you with your household budget
  • A longer fixed-rate period means you won’t have to remortgage as often, which means you’ll save on fees

What are the disadvantages of a five-year fixed mortgage?

All mortgage options have drawbacks to consider. Here’s the disadvantages:

  • You won’t benefit from any decreases in interest rates
  • You’ll need to pay an arrangement fee (also known as a product or mortgage fee) for taking out a fixed-rate mortgage
  • They’re less flexible, so if you need to end your mortgage before the fixed rate concludes, you’ll need to pay an early repayment charge (ERC). Depending on when you leave your deal, this could be as much as 5% of the remaining balance on your mortgage. You may also be charged if you want to make overpayments

How to compare five-year fixed-rate mortgage deals

Comparing five-year fixed-rate deals is simple with us, here’s what you need to do:

  1. Choose whether you’re a first-time buyer, home mover or looking to remortgage

  2. Enter details about yourself and the property you’re looking to buy

  3. Tell us how much you want to borrow

  4. Let us know how much you earn

  5. Compare the mortgages available. Make sure you look at interest rates, charges and the annual percentage charge rate (APRC)

What is the average five-year fixed-rate mortgage today?

There isn’t really an average five-year fixed-rate mortgage as the interest rate is only part of the picture. You’re not guaranteed to get the rate advertised by the lender, as they’re only required to offer it to 51% of applicants. The rate you receive may be higher (or lower) depending on your circumstances and the property you intend to purchase.

You also need to take into account the charges and fees, which may mean that mortgages offering the lowest interest rates aren’t necessarily the best deals.

How do I choose the right five-year fixed-rate mortgage for me?

Before applying a for a five-year fixed-rate mortgage, it’s important to compare the different options available to you.

Make sure you look at the interest rates during the fixed term, but also consider the charges. For instance, a high arrangement fee may cancel out any savings you make with a lower interest rate.

Look at the annual percentage charge rate (APRC) to see how much the mortgage would cost you over its entire term, not just during the fixed-rate period.

If there’s a possibility that you may need to move after a couple of years, you may want to consider a two or three-year fixed-rate mortgage instead.

How much deposit do I typically need to save?

You can find five-year fixed-rate mortgages with a deposit of 5% or higher.

How your loan-to-value ratio will impact your fixed-rate mortgage

A lower loan-to-value (LTV) ratio will give you access to more competitive mortgage rates.

If your LTV is 80% or lower, you can expect be offered the best mortgage rates.

Should you fix your mortgage for five years?

This will depend on your circumstances. If you would benefit from the peace of mind that fixed payments can give you and aren’t looking to move anytime soon, then it’s definitely an option to consider.

If there’s some uncertainty around how long you’re staying in the property or you’d like to take advantage of any drops in interest rates, consider variable mortgage options instead.

What to do when your five-year fixed-rate mortgage ends?

About two to three months before your fixed-rate period ends, you can start thinking about remortgaging. This could be to another fixed-rate mortgage or a variable mortgage with a lower interest rate than your lender’s SVR.

Compare options from your current mortgage provider, as well as other lenders on the market to find the best deal for you.

Alternative options to a five-year fixed-rate mortgage

Apart from choosing a different length of fixed-rate period – two or three years, for example. You could look at variable mortgages:

Tracker mortgages: Tracks the Bank of England base rate, with an added percentage of interest on top. For example, base rate plus 1%

Discount mortgage: Tracks your lender’s SVR minus a set percentage. For example, SVR minus 1%

SVR: This is the lender’s standard rate which you’ll be moved to when your fixed-rate ends. Your lender can change this when they want and it’s often expensive


Yes, you can overpay but you’ll usually be charged to do so.

Yes, it’s possible to get a ten or 15-year fixed-rate mortgage, but they’re extremely rare.

Two and three-year fixed-rate mortgages are common.

Compare mortgages with us to see how they stack up against five-year fixed-rate options.

Having one failed mortgage application will not affect your credit score, but if you apply multiple times and are unsuccessful, it will. This is because a mortgage application requires a hard search on your credit file. Multiple hard searches will impact your credit score.

A successful mortgage application will still affect your credit rating, as you’re essentially taking out a huge loan. However, your score should only decrease slightly and will build back up again as you demonstrate you can make your payments on time and in full.

Try to avoid applications for other types of credit in the months before and after applying for your mortgage.

Yes, it’s possible to get a five-year fixed-rate buy-to-let mortgage.

You’ll be required to show that the rent you intend to charge can comfortably cover the mortgage repayments.

The Bank of England has been increasing interest rates since the end of 2021 and with inflation set to rise even further by the end of the year, it could be a good idea to fix your mortgage rate as soon as possible.

Most household bills are expected to rise over the coming months, so fixing your rate now can help give you peace of mind that you won’t have a nasty surprise in the form of mortgage payment increases in the near future.

If you would like to keep your payments consistent for the foreseeable and would like to not worry about potential increases, then it can be a good idea.

However, if you think you may want to move soon, you may want to think about a variable mortgage with more flexibility.

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