5 year fixed rate mortgages offer the longest fixed rate period available from many lenders, although there are a small number of longer fixed rate periods available in the marketplace.
If you find the right deal a 5 yr fixed rate mortgage could provide the key to manageable payments.
For most people, however, their appeal lies in the security of knowing that your payments will not rise at all in the next five years.
However, while this is a definite advantage if you need to budget, you should also consider that you will not be able to benefit from any lowing of interest rates during this time.
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.
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.
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 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 seeking the best buy 5 year fixed mortgage for your circumstances, remember that the one with the lowest interest rate is not necessarily the best.
To determine which is really the best five year fixed rate mortgage for your circumstances, you should also consider the fees charged and the terms 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.