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Choosing between a two or five year fixed mortgage comes down to flexibility versus certainty. A two year fix lets you benefit sooner if rates fall, while a five year fix offers longer term security but may cost more if rates drop. Here's everything you need to consider.
KEY INFORMATION
Choosing between a 2 or 5 year fixed mortgage? Here are the key differences:
| Feature | 2 year fix | 5 year fix |
|---|---|---|
| Stability period | 2 years | 5 years |
| Flexibility | May be easier to move. Can remortgage sooner | Ties in for longer |
| Early repayment charges | Usually apply, typically lower | Usually apply, typically higher in the first years |
| Best for | Rate watchers or movers | Long-term stability seekers |
However, the best mortgage depends on your personal circumstances. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for you.
A fixed rate mortgage is a home loan where the interest rate and monthly payments stay the same for a set period, offering homeowners stability and making budgeting easier.
This is different to variable rate mortgages where the rate you pay can go up and down. For example, if you take out a fixed rate mortgage at 4%, your monthly repayments stay the same even if the Bank of England base rate changes.
2 or 5 year fixed mortgages are the most common, but you can also get fixed deals for 3 years, 10 years or even longer.
Fixed rate mortgage deals are by far the most popular type of mortgage. UK Finance statistics from May 2025 show that 85% of outstanding mortgages are fixed rate mortgages compared to 7% on tracker mortgages and 6% on the standard variable rate.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
A 2 year fix may be best if you:
If you’re considering a 5 year fixed deal, here are the pros and cons.
A 5 year fix may be best for you if you:
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
When you’re deciding between 2 or 5 year mortgages, here are some of the key differences to consider.
Interest rates and monthly payments on 2 and 5 year fixed mortgages are fairly similar in summer 2026, however rates on 2 year fixed rates deals are typically a bit cheaper.
Here are the best fixed mortgage rates in the UK today for 2 and 5 year fixed mortgage deals.
| Lender | Initial Rate | Fees | Monthly Payment | APRC | Annual Cost | Max LTV | Rep. Example |
|---|---|---|---|---|---|---|---|
| Barclays Bank | 4.30% | £1,004 | £994 | 5.7% | £11,977 | 60% | Details |
| HSBC | 4.30% | £1,016 | £994 | 6.1% | £11,934 | 60% | Details |
| NatWest | 4.31% | £1,025 | £996 | 6.5% | £11,964 | 60% | Details |
| NatWest | 4.31% | £1,525 | £998 | 6.6% | £11,993 | 60% | Details |
| Danske Bank | 4.32% | £1,124 | £996 | 6.0% | £12,010 | 60% | Details |
| Lender | Initial Rate | Fees | Monthly Payment | APRC | Annual Cost | Max LTV | Rep. Example |
|---|---|---|---|---|---|---|---|
| HSBC | 4.44% | £999 | £1,010 | 6.1% | £12,125 | 60% | Details |
| HSBC | 4.47% | £999 | £1,014 | 6.1% | £12,024 | 60% | Details |
| HSBC | 4.47% | £999 | £1,014 | 6.1% | £12,000 | 60% | Details |
| Monmouthshire BS | 4.49% | £1,010 | £1,016 | 7.7% | £12,202 | 60% | Details |
| Santander UK Plc | 4.49% | £1,224 | £1,016 | 6.3% | £12,185 | 60% | Details |
| Lender | Initial Rate | Fees | Monthly Payment | APRC | Annual Cost | Max LTV | Rep. Example |
|---|---|---|---|---|---|---|---|
| Barclays Bank | 4.33% | £1,004 | £998 | 5.4% | £11,993 | 60% | Details |
| NatWest | 4.34% | £1,025 | £999 | 5.9% | £11,998 | 60% | Details |
| NatWest | 4.34% | £1,525 | £1,002 | 6.0% | £12,028 | 60% | Details |
| HSBC | 4.35% | £1,016 | £1,000 | 5.7% | £12,000 | 60% | Details |
| HSBC | 4.38% | £1,016 | £1,003 | 5.7% | £11,974 | 60% | Details |
| Lender | Initial Rate | Fees | Monthly Payment | APRC | Annual Cost | Max LTV | Rep. Example |
|---|---|---|---|---|---|---|---|
| HSBC | 4.51% | £999 | £1,019 | 5.7% | £12,225 | 60% | Details |
| Barclays Bank | 4.52% | £1,104 | £1,021 | 5.5% | £12,270 | 60% | Details |
| Barclays Bank | 4.52% | £1,104 | £1,021 | 5.5% | £12,203 | 60% | Details |
| HSBC | 4.54% | £999 | £1,022 | 5.7% | £12,209 | 60% | Details |
| HSBC | 4.54% | £999 | £1,022 | 5.7% | £12,199 | 60% | Details |
The best mortgage depends on your personal circumstances. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for you.
When you take out a 2 or 5 year fixed mortgage, it’s likely that you’ll need to pay an early repayment charge if you leave your deal early by remortgaging, paying off the balance, or by overpaying on your mortgage by more than your lender allows.
Early repayment charges tend to be higher for 5 year fixed rate mortgages compared to 2 year fixed rate mortgages.
For example, here are the early repayment charges for Nationwide’s 2 year fixed rate mortgage vs a 5 year fixed rate mortgage.
| 2 year fix | 5 year fix | |
|---|---|---|
| Year 1 | 2% | 5% |
| Year 2 | 1% | 4% |
| Year 3 | 3% | |
| Year 4 | 2% | |
| Year 5 | 1% |
Using Nationwide’s figures, if you have an outstanding mortgage of £200,000 and need to pay the early repayment charge in year 1:
A common question when deciding between a 2 or 5 year fixed mortgage is what is likely to happen to mortgage rates in the future?
Some people worry about locking in a rate for 5 years now in case mortgage rates fall in the future, while others are wary of taking a 2 year fixed mortgage in case mortgage rates increase.
Sadly, there is no crystal ball we can gaze into. However, you can read detailed analysis in our guide on Mortgage rate predictions.
Deciding between a 2 or 5 year fixed mortgage? Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
Still not sure how to choose between a 2 or 5 year fixed mortgage? Here are some of the factors you need to weigh up:
When choosing between a 2 or 5 year fixed mortgage, you’ll need to weigh up the risk of potentially paying a higher rate than you need to for longer by taking a 5 year fix if rates fall versus taking out a 2 year fix and potentially having to remortgage onto a higher rate in a couple of years if mortgage rates increase.
One factor to consider is how much room you have in your budget. If you think you may struggle to afford higher mortgage payments if rates go up, you may prefer the security of a 5 year fix over a 2 year deal. However, before making a decision on whether to get a 2 or 5 year fixed mortgage, it’s a good idea to discuss it with a mortgage broker.
When you’re deciding between a 2 or 5 year fixed mortgage, consider how long you’ll stay in the house. Even if your mortgage is portable, there’s no guarantee your lender will let you do it.
So if you plan to move house within the next few years, you may prefer a 2 year fixed mortgage deal.
You may also consider taking out a tracker mortgage or discounted variable rate mortgage instead of a fixed deal. You can get 2, 3, 5 and 10 year variable rate mortgage deals in the UK.
These may be appealing if you think interest rates may come down in the future and you want to benefit from lower mortgage payments (however your payments can also go up with variable rate mortgages).
| Mortgage type | How it works |
|---|---|
| Tracker mortgages | The rate you pay goes up and down in line with the Bank of England base rate. It may have a tracker floor, which limits how low your mortgage rate can go. Some tracker mortgages include a cap which limits the interest rate you’ll pay on your mortgage. |
| Discounted variable rate mortgages | These track under the lender’s standard variable rate. So your rate may go up or down, depending on any changes the lender makes to its standard variable rate. |
You can also get standard variable rate mortgages, but this is the deal you’ll usually roll onto when your current mortgage deal ends if you don’t remortgage. The lender sets the amount you pay and these can be significantly more expensive.
Here are some examples of when a 2 or 5 year fixed mortgage may work best for you.
If you’re buying a home but only plan to live there for a few years, you may prefer to take out a 2 year fix, or a 3 year fixed rate mortgage, rather than a longer-term 5 year fix. This gives you more flexibility.
If you plan to stay put for several years, you may decide a 5 year fixed mortgage offers the peace of mind you’re after. With your rate locked in for a longer period, your monthly repayments stay consistent, even if the wider market sees rate increases.
This stability can make budgeting easier and protect you from unexpected jumps in interest rates. The trade-off is that you will be tied into your deal for longer, and early repayment charges usually apply if you remortgage before the term ends.
Buy to Let investors choosing between 2 or 5 year fixed mortgages may consider:
The best mortgage depends on your personal circumstances. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for you.
Choosing between a 2 or 5 year fixed mortgage? Here’s an overview of the best mortgage rates available in the UK today at different deposit levels. Plus, the best rates on a 2 year tracker to help you compare.
| Mortgage type | Lender | Initial rate | Fees | Monthly payment | APRC | Annual cost | Max LTV | Rep. Example |
|---|---|---|---|---|---|---|---|---|
| 2 year Fixed | Barclays Bank | 4.30% | £1,004 | £994 | 5.7% | £11,977 | 60% | Details |
| 5 year Fixed | Barclays Bank | 4.33% | £1,004 | £998 | 5.4% | £11,993 | 60% | Details |
| 10 year Fixed | Santander UK Plc | 5.02% | £1,224 | £1,081 | 5.3% | £12,964 | 60% | Details |
| 2 year Tracker | Halifax | 3.96% | £1,599 | £957 | 6.9% | £11,523 | 60% | Details |
The best tracker mortgage rate covers all variable rate mortgages, including discounted variable rate mortgages, where the interest rate you pay is a fixed amount under the lender’s standard variable rate (SVR).
The best mortgage depends on your personal circumstances. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for you.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
At the end of your 2 or 5 year fixed mortgage deal, you’ll usually move onto your lender’s standard variable rate. You can avoid this by remortgaging onto a better deal. Read more in our guide End of mortgage term: what happens?
Yes – you can switch from a 2 year fixed mortgage to a 5 year fixed deal once your initial term ends. Most homeowners remortgage at the end of their fixed period to avoid moving onto their lender’s Standard Variable Rate (SVR), which is usually higher.
If you want to switch before your 2 year deal ends, you’ll likely face early repayment charges (ERCs). These fees can be significant, so it’s important to check this.
Whether a 2 or 5 year fixed mortgage is better for you depends on your circumstances. A 2 year fix offers flexibility, while a 5 year fix gives longer-term stability and protection if rates rise. The expert advisers at Mortgage Advice Bureau will find the right mortgage for your individual circumstances.
Yes, but you’ll usually pay an early repayment charge (ERC) if you leave a 5 year fix before the end of the deal. These can be significant – often 1% – 5% of your outstanding balance. Check your lender’s terms or speak to your mortgage broker before making any changes.
A 3 year fixed mortgage offers a balance between short-term flexibility and longer-term stability. They can be a compromise if you’re unsure about future rate changes or how long you’ll stay in your property.
However, the best mortgage for you depends on your personal circumstances, so it’s a good idea to get expert advice.
The advantages of fixing for 10 years or longer are that you’ll have the security of knowing how much you’ll pay on your mortgage for a longer period. Plus, you may pay less in mortgage fees than if you take out multiple 2 or 5 year mortgages. But fixing for such a long time means you’ll run the risk of potentially missing out on better deals. It’s important to get expert advice from a mortgage broker to help you find the right mortgage for you.
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