Use our 2 year fixed rate mortgage comparison to help you find the right mortgage for you. With these mortgages, your interest rate and monthly repayments will stay the same for 24 months.

What is a 2 year fixed rate mortgage?

A 2 year fixed rate mortgage is a mortgage deal which fixes your interest rates - and therefore your monthly repayments - for two years.

Whatever happens with wider interest rates, your mortgage repayments won't change during your two-year fixed term.

This means you don't have to worry about how you'd budget if interest rates - such as the Bank of England's base rates - increased.

Getting the best 2 year fixed rate mortgage

It's important to do your research to find the best mortgage available to you.

You can check and compare several factors, such as:

  • The loan to value (LTV): This is the percentage of your property's value that you borrow with a mortgage. For example, if the mortgage is 75% LTV, you'd need to put 25% in as a deposit. The lower the LTV, the better the rates tend to be.

  • The initial rate: This is the interest rate you pay on your mortgage deal. You can check the ones in the table to find the best 2 year fixed rate mortgages available. They all have an initial period of two years.

  • Fees and charges: You might get charged for taking out a 2 year fixed mortgage deal, although not all mortgages come with a set-up fee. While it's important to look at rates when looking for the best mortgage, no fee is a bonus. Some lenders let you add the fees to your mortgage balance, rather than paying them upfront when you take the mortgage out.

When you're looking for a 2 year fixed rate mortgage deal, remember to take all the fees and rates into account. Don't just look for the lowest initial rate or the best fees. You might think that with the best mortgage, no fees will be charged, but this kind of deal might mean the rates are much higher. Looking at the bigger picture is how you'll find the cheapest 2 year fixed mortgage available.

If you want a fixed rate for longer than 2 years, compare all fixed rate mortgages here.

What are the benefits of a 2 year fixed mortgage?

The big benefit of having a 2 year fixed rate on your mortgage is that you'll know exactly what your repayments will be for two years. This makes it feel like a 'safer' option.

Agreeing a rate for two years makes it much easier to budget than it would be if you had a mortgage that went up with rising interest rates. A two-year fixed rate mortgage also means you're protected against interest rate rises during the fixed period.

A 2 year or 5 year mortgage would both offer the benefit of protection against interest rises. But the good thing about choosing 2 year mortgage rates is that you're not 'locked in' for so long. That means that if there were better mortgage deals available on the market, you wouldn't have to wait so long before you could switch.

It's worth noting that lenders are currently offering some of the lowest interest rates on record. It seems interest rates are therefore more likely to rise than fall over the coming years, so it might feel like you should be 'locking in' for a long time. A 2 year fixed rate mortgage might work for you as it guarantees a specific rate for 24 months. But, if interest rates did drop even further, you'd still have the flexibility to get a new deal without having to wait too long.

And, finally, 2 year fixed mortgage rates might be good if you think your circumstances might change. Fixed rate mortgages usually come with an early repayment charge (ERC). That means that if you wanted to sell your home before the end of your fixed term, you'd pay a fee for doing so. If you're only locked in for two years, you might feel you could wait until your fixed term ends before selling, and avoid the ERC.

What are the downsides to 2 year mortgage rates?

There are a few things to think about, even if you've found the best 2 year fixed rate mortgage available.

Of course, it's nice to know how much you'll be paying each month for the next two years, and it can help with your budgeting. But it's likely that with a 2 year mortgage, you'll have a higher rate than you would with a variable mortgage. That means your repayments each month might be a bit more.

Remember also that with a variable mortgage, when interest rates drop, your variable mortgage rates will too. But, with a fixed rate mortgage they'll stay the same - as you're locked in to your deal. You might then feel like you're paying more than you should be for your mortgage.

When it's time to remortgage, you usually face fees for doing so. So, even if you've found the very best 2 year mortgage rates, you need to bear in mind that in two years you'll have to remortgage and pay the fees that comes with. If you choose a longer term, such as five years, you wouldn't have to pay remortgaging fees so soon.

Can I fix my mortgage for a different time period?

Yes, there will be several options available to you when it comes to fixing your mortgage. Some of the most popular are 2 year or 5 year mortgage fixes, but you could fix for any time period up to 10 years or even more.

Recently, longer fixes have become a bit more popular due to the uncertain economic climate. Lenders have become more competitive as they try to attract customers, and borrowers are looking for security. It's a good time to fix while interest rates are low.

But, if you want to find interest rates at their lowest, 2 year fixed rate mortgage options might be worth a look. If you find the best 2 year fixed mortgage rates, you could get a good deal. You tend to get better rates with a two-year deal because there's less risk to the lender.

Shorter fixes, such as two years, are also good if you think you might move home fairly quickly. Not only will your fixed term end sooner, but the penalties are usually lower to pay off your mortgage before the term ends.

Lastly, if interest rates fall you can move to a cheaper deal sooner than you could if you had a longer fixed term.

If you decide to go for a two-year deal, it's important to use a comparison like our one above to find the best 2 year fixed mortgage available to you.

How much can I borrow with a 2 year fixed rate?

How much you can borrow through 2 year mortgage deals will depend on your situation, like it will with all mortgages.

You can use our mortgage calculator to work out roughly how much you might be able to borrow.

Do you need a large deposit to get a two year fixed rate mortgage?

If you decide to go for a 2 year fixed rate mortgage deal it's important to use a comparison like the one above. You'll be able to see how much deposit you need.

The cheapest 2 year fixed rate mortgage deals are usually only available to people who can put in a large deposit, such as 40% or more. That's why first-time buyers might sometimes be more likely to choose a variable mortgage, as they're unlikely to have a big deposit.

What happens after the fixed rate ends on my mortgage?

When your 2 year fixed rate mortgage deal comes to an end, you have several options as to what you could do next.

If you do nothing, you'll automatically be moved to your lender's standard variable rate (SVR) after your 2 year fixed mortgage deal ends. This is often a higher rate than you've been paying during your fixed term, so it's not ideal if that's the case. It all depends on what rate you had during your fixed term, and the current economic climate.

You could switch to another mortgage deal with your existing lender. This could be another fixed rate mortgage, or a different type of mortgage. You should speak to your lender a few months before your 2 year mortgage rates to talk about getting better rates on a new mortgage.

Or, you could remortgage by switching your mortgage to another lender.

Don't just accept what your current lender is offering. Whichever option you choose, make sure you're getting the lowest rate you can find. Watch out for any charges for applying for a new deal.

2 year fixed rate mortgages FAQs

Q

Can I pay off my mortgage before the 2 deal ends?

A

Yes, but your lender may charge you for this. You usually get charged if you repay or switch your mortgage before the fixed rate ends.

Q

What is the longest fixed rate mortgage I can get?

A

You can currently find up to 10 year fixed rate mortgage deals, but whether you can get them will depend on if you meet the provider's lending criteria.

Q

Are fixed rate deals the best for mortgages?

A

It depends on your circumstances. Find out the difference between each mortgage type so you can choose the best mortgage rate for you.

Q

Can I get a 2 year fixed buy to let mortgage?

Q

Do you always have to pay a fee when you apply for a mortgage?

A

No, some lenders offer mortgages with no fees, but the interest rate may be higher as a result.

Q

Can I get a 2 year fixed mortgage without fees?

A

Yes, but the rate may not be as low as others that charge a fee. Check the total cost of the mortgage over the 2 years to find the cheapest deal.

About our mortgage comparison

Q

Who do we include in this comparison?

A

We include every mortgage in the UK you can apply for directly from the lender. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.