Should I get a 2- or 5-year fixed rate mortgage?

If you’re thinking of taking out a new mortgage or remortgaging, you’ll know there’s been a lot in the news about mortgage rates recently. But how do you work out what might be the right option for you?  

Over the course of a mortgage term, it’s likely you’ll be able to select different mortgage types, and different deals, in order to make sure you’re paying your mortgage off in the way that works for you. However, most people still choose a fixed rate product. 97% of people taking out a new mortgage or remortgaging in 2025 chose a fixed deal.*

While a mortgage broker or adviser will be able to advise you, it’s also useful to understand for yourself how fixed rate mortgages work. There are also lots of useful digital tools to help you decide, including mortgage calculators, getting a Mortgage in Principle and using an equity tracker – a feature included in Rightmove’s Instant Valuation tool.

*UK Finance Regulated Mortgage Survey

Summary of 2 or 5 year fixed mortgages

Factors to consider	2-year fixed rate mortgage	5-year fixed rate mortgage
Interest rate	Check current rates for your LTV.	Check current rates for your LTV.
Security	Two years of fixed monthly payments.	Five years of fixed monthly payments.
Flexibility	More flexible for potential movers or those wanting to remortgage soon. Most lenders allow you to overpay without charge, but this is usually capped at around 10% each year.	Fixed rates for longer and moving within five years might require you to pay fees if you wish to change lender. Most lenders allow you to overpay without charge, but this is usually capped at around 10% each year.
Fees and charges	Usually lower early repayment charges, where present. Arrangement fees for taking out a new mortgage in 2 years’ time should be considered.	Repayment charges might be higher in early years, where present.
Could be a good option for you if	you want to review your position in two years’ time, either to move lenders or to move home, without having to pay an ERC.	you want more stability, with predictable payments for a longer period.

What is a fixed rate mortgage?

A fixed rate mortgage offers borrowers an interest rate that’s set for a specific time period. The most common fixed-rate mortgages are for 2 and 5 years, but you’ll also find lenders offering other time periods, including 3-year or 10-year fixed terms.*

More recently, some lenders have started to offer even longer terms, or even fixed deals for the whole of your mortgage. While this is common in other countries (notably US and northern Europe), they are still a fairly new option for UK borrowers.

Generally, lenders offer lower interest rates for shorter time periods. However, this can change. We saw a prolonged period during the Cost of Living Crisis where 5-year rates were cheaper than 2-year deals. This was due to the Base Rate having to rise sharply to address inflation. This impacted the costs of 2-year fixed rates more than 5-year fixes, but costs for both increased substantially.

When considering a fixed-term mortgage, you also need to understand how Loan-to-Value, or LTV, is used by mortgage providers. LTV means how much of the value of the property you want to borrow as a loan.

So, if the property you’re buying is worth £100,000 and you want to borrow £90,000, then your LTV is 90% and your deposit is 10%. Mortgage providers will offer a lower interest rate for a lower LTV, so it’s worth having as a big a deposit as you can to try to increase your LTV.

*UK Finance Regulated Mortgage Survey

What’s the difference between fixing my mortgage rate for 2 or 5 years?

In simple terms, a 2-year fixed rate mortgage will lock you into a fixed interest rate for 2 years, while a 5-year deal, unsurprisingly, locks you into that rate for 5 years. This rate is guaranteed, regardless of what’s happening elsewhere in the economy, including any changes made to the Bank of England Base Rate.

You can check the current average mortgage rates for 2 and 5-year fixed deals here. 

Why are the interest rates on 2 and 5-year deals different?

Interest rates for 2 and 5-year fixed rate mortgages are different because lenders have to consider what the market expects to happen to interest rates more widely. Lenders also borrow money to lend to you, and the cost of their borrowing is affected by something called Swap Rates.

Swap Rates are closely tied to how the market expects the Bank of England (BoE) to set interest rates, which it does eight times a year. Swap Rates in turn affect how much interest lenders charge you.

Generally speaking, if the market expects the BoE to raise interest rates over the next five years, then a longer 5-year fixed rate mortgage will usually carry a higher interest rate than a 2-year fixed rate mortgage. If the BoE is expected to lower interest rates then a five-year fix will usually carry a lower interest rate than a 2-year fix.

How long have 5-year fixed rates been cheaper than 2?

The cost of living crisis did mean that 5-year fixed rates became cheaper than 2-year rates from the end of 2022 onwards. This changed in 2025, when rates flipped back to being cheaper for 2-year fixes. However, this flipped back again when the war in Iran started in February 2026 and wider economic uncertainty started to affect interest rate setting and predictions.

It’s always worth checking the latest mortgage rates to see which rates are currently cheaper for you, depending on your specific circumstances.

Advantages of a 2-year fixed mortgage

Your monthly payments will be fixed for two years, so you’ll have certainty in what your monthly payments are going to be throughout this period, while enjoying greater flexibility sooner than with a longer fix. 2-year fixes also tend to be cheaper than 5-year fixed deals.

Advantages:

• Fixed, predictable mortgage payments for two years, making budgeting and planning easier.
• If mortgage rates have improved by the end of your 2-year fix, or your equity has increased due to house price growth and/or repaying the balance, a 2-year deal may mean that you can access cheaper rates sooner.
• If you’re planning to repay a large proportion of your mortgage quickly, you can do so without any penalties on a 2-year fixed rate deal. Early Repayment Charges can be lower on 2-year fixes than 5-year deals, so it’s always worth factoring in if you plan to repay early.
• If you need to move in the coming years, the shorter 2-year fix may give you more choice of lenders without paying Early Repayment Charges (ERC).

Disadvantages of a 2-year fixed rate mortgage

The main disadvantage of a 2-year fix is that if interest rates go up in the short term, you will have to pay a higher interest rate at the end of your 2-year term. You’ll also usually have to pay mortgage fees again when you remortgage after two years, adding to the cost.

Disadvantages:

• You’ll only have fixed, predictable mortgage payments for two years, so you could be affected by interest rate rises sooner than if you’d chosen a longer fixed rate deal.
• You’ll likely have to pay fees again after only two years.

Who is a 2 year fixed mortgage best for?

A 2-year fixed mortgage might be best for you if:

• you are confident you can afford higher monthly payments in two years’ time if interest rates rise.
• you think you might need to move house in the next 2-5 years. However, many mortgage are ‘portable’, meaning they can be transferred to your next property, but there is no guarantee that your lender will approve an amount higher than your existing mortgage
• you plan on paying off a large proportion of your mortgage in the short term. 2-year fixed rate mortgages tend to make this easier, as you can pay a large chunk of your mortgage off without any penalties once the fixed period ends, then move onto a new fixed-rate deal.

Advantages of a 5-year fixed rate mortgage

With a 5-year fixed rate mortgage, you know that your monthly repayments are locked in at the same amount for the next 5 years. So, even if interest rates rise during that time, it won’t affect your monthly repayments.  

Advantages:

• Fixed, predictable mortgage payments for five years, making budgeting and planning easier over a longer timeframe.
• If mortgage rates increase during your 5-year fix you will not be affected, and can ride out any interest rate fluctuations for the next five years.
• Even if you need to move during the five-year period, most mortgages allow you to port (transfer) your deal to another property, but if you want to change lenders you’d likely have to pay Early Repayment Charges (ERCs).

Disadvantages of a 5-year fixed rate mortgage

The main disadvantage of a 5-year fixed rate mortgage is the same as the potential benefit: you’re locked into the same rate for five years. If interest rates go down during that time, you’ll be locked into paying your higher rate for five years, whereas a 2-year deal would allow you to remortgage sooner at a lower rate.

Disadvantages:

• The possibility of being locked into a higher rate for five years if interest rates go down.
• If you need to get out of the 5-year deal, or want to pay off a significant amount during the 5-year period, you will likely have to pay Early Repayment Charges (ERCs). These vary by lender and mortgage product, but can be higher in the early years for 5-year fixes.

Who is a 5 year fixed mortgage best for?

A 5-year fixed mortgage might be best for you if:

• you want to lock in at the current rate for longer-term stability in your monthly payments.
• you’re not planning to move for the next five years. If your 5-year deal is portable (can be moved onto another property), then this would still be possible should circumstances change.
• you have a smaller deposit and want more time to build equity (the amount of the property’s value that you don’t owe money on), before remortgaging. Remortgaging will depend on how much equity you have in the property, and your equity is affected by the changing value of your home, as well as how much you have repaid on your mortgage.

Is it better to fix my mortgage rate for 2 or 5 years right now?

To choose whether a 2- or 5-year fix is better depends on a number of factors, including your personal circumstances, the LTV of the property you are buying or remortgaging, current interest rates and market sentiment around how interest rates might change in the future. You might also consider the kinds of discounted variable rate or tracker mortgages that are available as alternatives.

Generally, 2-year fixed rate mortgage might be better for you if interest rates are expected to drop in the next two years and you don’t need predictable monthly payments for a longer period, or if you want the flexibility to move in the next two years. A 2-year deal might also be better for you if your LTV is close to the next LTV ‘band’, which might allow you to move into a band with better rates (see how LTV bands affect mortgage rates on our mortgage tracker page).

A 5-year fixed rate mortgage might be better for you if you think that interest rates will rise in the next five years, don’t plan to move, or if you have a smaller deposit and want to give yourself more time to gain equity before you remortgage. A 5-year fix might also be better for you if you are below 60% LTV and can’t move into a lower band.

Are tracker and variable rate mortgages a good option right now?

Tracker and variable rate mortgages have been offering competitive rates in recent months, as lenders have been setting fixed rates slightly above swap rates. This means the some fixed rate mortgages may come at a slight premium, making initial tracker mortgage rates appealing to buyers willing to pin their rates to the Bank of England Base Rate.

Tracker and variable rate mortgages could be a good idea for buyers wanting more flexibility. Many tracker and variable rate deals don’t include overpayment charges or early repayment charges (ERCs), giving the option of switching to a fixed rate when rates drop.

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FAQs on 2 or 5 year fixed rate mortgages

• What is the best fixed rate mortgage term to choose?

  The best fixed rate mortgage term for you depends on a number of factors. These include your budget, interest rates, how long you want predictable monthly repayments, how much flexibility you want around moving or overpaying/repaying early, and wider macroeconomic factors.

• Is a 2 year fixed or 5 year fixed rate better?

  A 2-year fixed rate might be better if you want to access what are usually lower rates, along with greater flexibility sooner than you’d get with a 5-year deal. On the other hand a 5-year rate might be better if you want predictable payments for longer, and don’t plan to move in the next few years.

• Are mortgage rates forecasted to go down in the next 5 years?

  Nobody knows for certain what mortgage rates will do in the next five years, but if unpredictable markets improve then lenders are likely to offer lower rates, and we are already seeing this happening to some extent. Ultimately, however, if you’re trying to choose a mortgage you should carefully consider available rates, the relative security of short- or longer-term fixes, the potential benefits of tracker or variable rate mortgages, your own budget, and the LTV you are working with.

• What is a good 5 year fixed mortgage rate?

  The average 5-year fixed mortgage rate for 90% LTV is currently 5.29%* (May 20, 2026), so anything below that would be considered cheaper than average.

• What is a good 2 year fixed mortgage rate?

  The average 5-year fixed mortgage rate for 90% LTV is currently 5.35%* (May 20, 2026), so anything below that would be considered cheaper than average.

• What are top tips for repaying a mortgage?

  Top tips for repaying a mortgage include things like keeping your monthly payments as low as possible by remortgaging before you move onto your lender’s Standard Variable Rate (SVR), and asking your lender to recalculate your monthly payments or payment term if you do overpay.

*Data provided by specialist mortgage technology provider Podium Solutions. The data covers 95% of mortgage lending, to exclude specialist lenders.

Please note: Your home may be repossessed if you do not keep up repayments on the mortgage. Rightmove is not authorised to give financial advice; the information and opinions provided in these articles are not intended to be financial advice and should not be relied upon when making financial decisions. Please seek advice from a regulated mortgage adviser.