If you find the right 5yr fixed rate mortgage rate it could prove to be the key to managing your payments.
For the majority of people the appeal lies in the security of knowing that you're payments will not rise in the next five years.
While this is a great advantage if you are planning a budget, you should also consider that by committing to this period of time you won't be able to benefit if interest rates lower during this time, which could mean you end up paying more than necessary.
You also need to consider that you'll be tied in for the entire time without the ability to switch your mortgage elsewhere. It's for this reason that you need to choose a mortgage that is flexible enough to meet your requirements.
Also you must remember that you will be tied into the contract for the entire amount of time without the ability to switch. Therefore, its important that you chose the mortgage that has the flexibility that meets your requirements.
A 5 year mortgage is likely to be available to first time buyers, house movers, those re-mortgaging, and the self-employed alike so it is an option worth considering.
Even the cheapest 5 year fixed mortgage is likely to have an interest rate that is higher than the best 2 or 3 year deals, but this is the price you will have to pay for guaranteed repayments.
It's also worth bearing in mind that even the best fixed rate mortgage deal 5 years at 90% of your property's value is likely to be more expensive than if you only need to borrow 60%-70% of your property's value. This is true for all mortgage deals though.
When you are looking to get the best 5 year fixed mortgage available for your circumstance, you should always remember that the lowest interest rate may not necessarily be the best deal for you.
To determine which is the best mortgage for your circumstances, you should also consider the fees charged as well as the terms and conditions which apply to the early repayment charge period.
You need to pay particular attention to the arrangement fee with a fixed rate mortgage, as this fee often represents a significant cost and will attract interest if you don't pay it off upfront.
Also, while early repayment charges usually cease at the end of a discounted or tracker rate period, it is more common for them to continue beyond the end of a fixed rate period, so check this carefully.