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A 5 year fixed mortgage locks your interest rate for five years, so your monthly payment stays the same regardless of what happens to the Bank of England base rate. Here's how it works, who it suits, and what to weigh up before you fix.
A 5 year fixed mortgage is a home loan where your interest rate stays the same for a set five-year period, regardless of what happens to the Bank of England base rate or the wider mortgage market. Your monthly payment doesn't change during this fixed rate period, which makes budgeting straightforward.
A 5 year fix tends to suit homeowners who value payment certainty and don't plan to move within the next five years. If you might move sooner, or think rates could fall significantly, it's worth speaking to an advisor about shorter fixes or alternative options.
A 5 year fixed mortgage, also known as a five year fixed rate mortgage, is a home loan where your interest rate is fixed for a set period of five years. This means your monthly payments stay the same for the entire fixed rate period, whatever happens to the wider mortgage market.
The fixed rate period and your overall mortgage term are two different things. You might take out a 25-year mortgage with a five year fixed rate. For the first five years, you pay that fixed rate. When the fixed period ends, if you don't remortgage, you'll typically move onto your lender's standard variable rate (SVR), which tends to be significantly higher and can move up or down at any time.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
When you take out a five year fixed rate mortgage, your lender calculates your monthly payment based on your loan amount, interest rate, and remaining term. That payment stays the same for 60 months, giving you payment stability for the whole fixed rate period. If the Bank of England cuts or raises the base rate during this time, your payment doesn't change.
This differs from a variable rate mortgage, where your payments can go up or down as interest rates change, and from a tracker mortgage, which follows the Bank of England base rate at a set margin above it, so any base rate change directly affects your monthly payment. A 5 year fix is popular with homeowners who want to lock in their payments and avoid surprises from interest rate fluctuations.
Don't confuse the fixed rate period with your mortgage term. A 5 year fix simply means your rate is locked for the first five years of what might be a 25 or 30 year mortgage. What happens after that fixed period matters just as much as the rate you get now.
Every lender sets its own 5 year fixed rates, and the rate you're offered depends on your personal circumstances rather than a single published figure. Understanding what lenders look at helps you put yourself in the best position before you apply.
Your loan-to-value ratio, the size of your mortgage compared to the property's value, is usually the single biggest factor in your rate. The more deposit or equity you have, the lower your LTV, and the more competitive the rates you can typically access. Putting down a bigger deposit, or building more equity before you remortgage, can make a meaningful difference to the deals available to you.
Your credit report reflects your payment history and how you manage credit, and it's a key factor in the rate you're offered. Lenders look for a consistent track record of paying on time. If your credit history includes missed payments, defaults, or County Court Judgements, you can usually still get a 5 year fix, though you may need a specialist lender and could pay a higher rate.
Your income and employment type are also considered. A stable, verifiable income generally supports a smoother application and can improve the rates on offer. Self-employed borrowers sometimes need to provide more documentation, such as two or three years of accounts, and may find their choice of lender more limited.
Because every lender weighs these factors differently, comparing rates from a wide range of lenders is the most reliable way to find out what you could actually be offered, rather than relying on headline rates advertised online.
A 5 year fix suits some homeowners better than others. Your circumstances, plans, and attitude to risk all factor into whether it's the right choice.
If you're remortgaging, it's worth considering your existing mortgage balance and loan-to-value first. Paying down your balance, or seeing your property's value rise, can help you qualify for better rates and terms when you come to fix again.
A five year fixed rate mortgage can be a good option if you prefer stability in your financial planning, since it locks in your interest rate and monthly payments for five years. But the decision should also account for anything that might change in your circumstances over that time, such as your income, expenses, or plans to move.
Is this you?
Homeowners who value budget certainty
If knowing exactly what you'll pay each month helps you plan with confidence, a 5 year fix removes any worry about rate rises for the next five years.
Those staying put for the foreseeable future
If you're not planning to move within five years, you won't need to worry about early repayment charges eating into your equity.
First-time buyers establishing themselves
When you're still adjusting to the costs of homeownership, predictable mortgage payments make it easier to manage the rest of your budget.
Families with fixed household budgets
If childcare costs, school fees, or reduced working hours mean your budget has little flexibility, a 5 year fix provides useful stability.
Worth considering
Not sure which term is right for you
Every homeowner's circumstances are different. Speak to an advisor to compare fixed, tracker, and variable options across a wide range of lenders.
Understanding the genuine benefits helps you make an informed decision rather than choosing based on assumptions.
Your monthly payment stays exactly the same for the whole fixed rate period. That figure won't change regardless of what happens to interest rates, inflation, or the wider economy during your fixed period.
This predictability has real value. You can commit to other financial goals, whether that's building savings, investing, or simply managing your budget without worrying that a rate rise might squeeze it.
Nobody knows for certain where rates will go. Locking in now protects you if inflation proves stickier than expected, or economic conditions push rates higher than markets currently anticipate.
Homeowners who fixed for five years before a period of rising rates avoided the impact of that rate spike entirely. While large increases are less common, the principle holds: fixed rates provide a form of insurance against the unexpected.
Every remortgage involves time, paperwork, and potentially fees. With a shorter fix, you go through this process more often. With a 5 year fix, you only need to think about your mortgage once every five years.
This isn't just about convenience. Each remortgage involves a valuation, an affordability assessment, and legal work. If your circumstances have changed, for example a move to self-employment, you might find remortgaging harder than expected. A 5 year fix gives you longer before you need to navigate this again.
Some lenders apply a lower stress test rate for 5 year fixed mortgages than for shorter fixes, under current guidance from the Financial Conduct Authority. This can mean you're able to borrow more with a 5 year fix than with a 2 year fix, which is worth exploring if you're stretching to afford a property. Speak to an advisor to understand how this might apply to your application.
No mortgage product is perfect. Understanding the trade-offs helps you go in with realistic expectations.
This is the biggest consideration for most borrowers. If you repay your mortgage early, remortgage, or sell your property during the fixed period, you'll typically face an early repayment charge.
Structures vary between lenders, so always check the specific terms of any deal before you commit.
These charges can have a significant impact on your finances if circumstances force you to move or remortgage early. Some mortgages are portable, meaning you can transfer them to a new property, but porting isn't guaranteed. You'll still need to meet affordability criteria, and if you're borrowing more for a bigger property, you might end up with a blended rate.
When you fix, you're betting that current rates represent good value. If the Bank of England cuts rates more aggressively than expected and fixed rates fall significantly, you'll be locked into your higher rate for the rest of the term.
Homeowners who fixed during periods when rates were low have benefited for years afterwards, while those who fixed at the peak of a rate cycle have been locked in while rates improved elsewhere. There's no way to know in advance which scenario you'll be in, which is why it's worth discussing your view on rates with an advisor before deciding.
Most 5 year fixed mortgages allow overpayments up to a set percentage of your outstanding balance each year, commonly around 10%, without triggering a charge. If you receive a bonus, inheritance, or other lump sum and want to put it all toward your mortgage, you might be limited. Overpaying beyond your lender's allowance typically triggers an early repayment charge on the excess amount.
Some lenders offer more generous overpayment allowances, so it's worth asking specifically if flexibility matters to you.
Five years is a significant commitment. Your life can change substantially in that time, including job changes, relationship changes, family changes, and health changes. While a 5 year fix provides stability, it also reduces your flexibility to respond to changing circumstances.
If you're early in your career with an uncertain trajectory, or if a change in circumstances might mean moving, the commitment required by a 5 year fix deserves careful thought.
This is one of the most common questions borrowers face. The right answer depends on your circumstances and your view on where rates might be heading. The main difference between a 5 year fix and a 2 year fix is the balance between stability and flexibility: a 5 year fix offers longer-term repayment certainty, while a 2 year fix gives you more frequent opportunities to switch rates or lenders.
Choosing a longer fix can also save you money on arrangement fees over time, since you only pay one every five years rather than multiple times across the same period with shorter fixes. A fixed deal of any length gives you the reassurance of stable monthly payments for its term, which makes it easier to budget and plan ahead.
The gap between 2 year and 5 year fixed rates changes over time depending on what lenders expect to happen to the base rate. Sometimes 5 year fixes carry a premium over 2 year fixes to compensate lenders for the longer rate guarantee; at other times the gap narrows considerably. Because this changes frequently, it's best to ask an advisor for a current comparison rather than relying on rates you've seen quoted elsewhere.
Over a longer fix, you avoid the time, paperwork, and potential fees of remortgaging every two years, but you also commit to your rate for longer. If rates were to rise significantly by the time a 2 year fix ends, the 5 year fix could work out cheaper overall; if rates fall, the reverse could be true.
A 2 year fix might suit you if:
A 5 year fix might suit you if:
If you're weighing up fix lengths and can't decide, ask your advisor to talk through both scenarios based on your actual circumstances rather than comparing headline rates alone. It's the only way to get a realistic picture for your situation.
Comparing fixed rate lengths isn't just about the headline rate
Understanding all the costs involved helps you compare deals accurately. A mortgage with a lower rate but higher fees might cost more overall than one with a higher rate and lower fees, so it's worth looking at the whole picture rather than the rate alone.
The arrangement fee, sometimes called a product fee, is what your lender charges to set up your mortgage. Many lenders charge somewhere between £0 and £2,000, with competitive deals often falling in the £999 to £1,499 range. You can usually choose to pay this upfront or add it to your mortgage. Adding it to your loan means you'll pay interest on it for the full term, which increases the total cost, so it's worth weighing this up against paying it upfront if you can.
Your lender needs to confirm the property is worth what you're paying, or what you say it's worth for a remortgage. Valuation fees can range up to around £1,500 depending on the property value and lender, though many competitive mortgage deals include a free valuation as an incentive, so check whether this is included before assuming it's a cost you'll need to cover.
For remortgages, legal work is often simpler, and typical fees range from around £300 to £800 if you arrange this yourself, though some lenders cover the cost through cashback or free legal services. For purchases, expect to pay somewhere between £1,000 and £1,750 for the full conveyancing process, and you'll need a solicitor or licensed conveyancer regardless of which mortgage you choose.
Using a mortgage broker can help you access a wide range of lenders and find deals you might not find yourself. Some brokers charge a fee directly, typically £300 to £500, while others are paid commission by the lender instead.
At Money Saving Advisors, we don't charge you a fee for arranging your mortgage. Providers pay us commission if you take out a mortgage through us, but this doesn't affect what you pay and doesn't influence which products we recommend.
Getting the best rate isn't just about having good credit. Several factors affect what lenders offer you, and understanding them helps you get your application in the best possible shape.
Lenders prefer borrowers with a stable income, since it demonstrates financial reliability. Checking and improving your credit score can also help, and using an advisor can give you access to products and rates that aren't always available directly, while removing much of the paperwork involved in applying.
How to get the best rate
Build your deposit or equity
Loan-to-value is the single biggest factor in your rate. If you're buying, a bigger deposit means access to better rates. If you're remortgaging, your property's current value and your remaining balance both matter.
Check and improve your credit score
Check your credit reports with the main credit reference agencies, correct any errors, pay down credit card balances, and avoid applying for new credit in the months before your mortgage application.
Compare a wide range of lenders
Some mortgage deals are only available through advisors, not directly from lenders. Comparing across a wide range of lenders helps you find options you might not find on your own, especially if your circumstances are more complex.
Time your application carefully
You can usually lock in a rate for a few months before completion, or before your current deal ends if you're remortgaging. This lets you secure a rate while you find a property or wait for your current deal to expire.
Consider the total cost, not just the rate
A lower rate with a higher fee can sometimes cost more overall than a slightly higher rate with no fee, depending on your mortgage size and how long you stay. Always look at the total cost over the fixed period before choosing.
How it works
Speak to an advisor
Tell us about your circumstances and what you're looking for. Your advisor will talk through your options with no pressure to proceed.
Compare your options
We compare a wide range of lenders to find fixed rate deals that suit your circumstances, explaining the rates, fees, and terms for each.
Get your agreement in principle
This gives you an idea of how much you could borrow, taking into account your income, expenditure, and overall financial situation.
Submit your application
Once you've chosen a deal, we help you put together your application and keep you updated at every stage.
Common questions
For many homeowners, yes. Fixing for five years locks in a rate that won't change regardless of what happens to the base rate or wider market. If you value certainty and aren't planning to move, a 5 year fix can make sense. If you think rates might fall significantly, or you might move sooner, it's worth discussing shorter fixes or alternatives with an advisor.
Yes, but you'll typically pay an early repayment charge. These usually start at around 5% of your outstanding balance in the first year, reducing each year to around 1% in the fifth year. The exact amount depends on your remaining balance and your lender's specific terms.
Your mortgage moves to your lender's standard variable rate (SVR), which is usually significantly higher than your fixed rate and can change at any time. Most homeowners remortgage to a new fixed or tracker deal before their fixed period ends to avoid moving onto the SVR.
Most lenders allow overpayments up to a set percentage of your outstanding balance each year, commonly around 10%, without a charge. If you overpay beyond this allowance, you'll typically face an early repayment charge on the excess amount. Check the specific terms of any deal you're considering, as some lenders are more generous than others.
Most lenders let you lock in a new deal a few months before your current rate expires, often somewhere between three and six months. This means you can start the remortgage process well ahead of time, securing a new rate while you're still paying your current one.
It depends on what happens to the base rate and wider market conditions, which can shift with little notice. Rather than relying on forecasts, it's best to speak to an advisor for up-to-date guidance on where rates currently stand and what might suit your circumstances.
Ten year fixes offer even more certainty but typically come with less competitive rates and stricter early repayment charges than 5 year fixes. They tend to suit people who definitely won't move for a decade and prioritise certainty above all else. For most homeowners, a 5 year fix offers a good balance of security and flexibility.
Yes, though your options and rates will be more limited. Specialist lenders consider applicants with adverse credit history, including missed payments and defaults, but you may pay a higher rate than mainstream deals. An advisor can help identify which lenders are most likely to accept your application.
For purchases, yes. Most 5 year fixed deals require a minimum deposit, though better rates are usually available the more you put down. For remortgages, you need sufficient equity in your property to meet the lender's loan-to-value requirements.
APR applies to most consumer credit, including secured loans. APRC stands for Annual Percentage Rate of Charge and is the equivalent measure used for mortgages, covering interest and fees across the full mortgage term. For secured loans, APR is the figure to compare between lenders.
Many 5 year fixed mortgages are portable, meaning you can transfer the deal to a new property. Porting isn't guaranteed, though: you'll need to meet affordability criteria at the time, and the lender must approve the new property. If you're borrowing more for a bigger house, you'll typically get a blended rate on the extra amount.
A 5 year fix often suits first-time buyers well, since you're adjusting to new costs and probably aren't planning to move immediately. The protection against rate rises can be especially valuable when your budget is tight. That said, if you might outgrow the property within five years, it's worth weighing up whether the potential early repayment charges work for your plans.
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