- >
- Mortgages>
- 5 year fixed rate mortgages
Compare our best 5-year-fixed-rate-mortgage rates
Add your details and our broker partner Mojo will find the best 5-year fixed mortgage rates for you
See 5-year fixed-rate mortgages from 90+ lenders across the whole of market
What is a five-year fixed-rate mortgage?
A five-year fixed-rate mortgage allows you to lock in the interest rate on your home loan for five years. That means your monthly repayments will not increase during that time - even if the Bank of England base rate rises.
This can be useful for people on a tight budget or anyone who wants peace of mind that their monthly costs will remain affordable. It’s especially helpful if you think rates are likely to rise over the coming years. However, it usually comes at a higher cost and means that if the Bank of England lowers the base rate, you won’t benefit.
Fixed-rate mortgages are popular with first-time buyers because of the financial security they can provide. There are lots of competing providers, so it pays to shop around and find the best 5-year fixed-rate mortgage.
The other main type of mortgage is a variable-rate mortgage, which includes tracker mortgages and discount-rate mortgages. With these types of mortgages, the interest rate, and thus your repayments, can change from month to month.
Variable-rate mortgages are often good value if the base rate stays steady, but they can leave homeowners facing sharply rising bills if the Bank of England pushes up interest rates.
How to compare 5-year fixed-rate mortgage deals
Add your details
Tell us about yourself and an adviser will check your mortgage eligibility and affordability.
Get recommended deals
We'll show you mortgage options based on what you've told us.
Apply via Mojo
Prepare and submit your mortgage application and get support through each step of the process.
Who is Mojo?
Mojo is a free online mortgage broker. We partner with them so you can get all the mortgage support you need in one place.
Mojo will find out about your circumstances, check your eligibility, and search across the whole of market to help you secure the best mortgage for your circumstances.
An expert will be on hand to offer help and advice and you will be supported through each step of your mortgage application.
Should you fix your mortgage for five years?
Whether or not to fix your mortgage depends on how much flex you have in your monthly budget, what you think rates might do and how important security is to you. If you are worried about how much your mortgage could rise and you can’t afford for interest rates to go up, a five-year fixed rate deal is well worth considering.
If you’d prefer not to lock in your mortgage rate for as long as five years, you could also consider a two-year or three-year deal. Alternatively, if you prefer to lock in for even longer, some mortgage lenders offer fixed-rate deals of up to ten years or more.
Advantages of a five-year fixed-rate mortgage
There are many advantages to taking out a five-year fixed-rate mortgage. These include:
Helping you budget by guaranteeing your monthly payments
Fixing costs so that they don’t change if the Bank of England base rate goes up
Protecting you against banks and building societies increasing their rates
Helping you plan for other expenses such as home improvements
Reducing how often you need to remortgage and pay associated fees
Disadvantages of a five-year fixed-rate mortgage
There are also several drawbacks you will need to consider:
No benefit if interest rates fall after you’ve locked in
Expensive early repayment fees if you want to overpay, move home or remortgage
Less flexibility if your financial circumstances change
Interest rates are generally higher compared with variable-rate deals
Fixed-rate mortgages can have higher arrangement fees
Find out more about the pros and cons of fixed-rate mortgages
How much deposit do I need to save for a five-year fixed-rate mortgage?
The best five-year fixed mortgage deal will depend on how much deposit you have saved. Most lenders will require a deposit of at least 5%, but if you can set aside more, you’ll have a better loan-to-value ratio and will get more attractive offers. That means more affordable repayments and lower interest rates.
It’s important to shop around and compare providers to ensure you’re getting the best price possible. That way, you can be safe in the knowledge that you’re choosing a mortgage that’s affordable and right for your circumstances.
What to do when your five-year fixed-rate mortgage ends?
The lender usually moves you onto its standard variable rate (SVR) when your fixed-rate mortgage ends. The SVR is generally higher than your fixed rate, and your monthly repayments could increase significantly. For this reason, it’s best to shop around and remortgage to a new deal at this point.
You can either remortgage to another fixed rate, locking in payments for between three and ten years, or explore alternative options such as a tracker mortgage.
Alternative options to a five-year fixed-rate mortgage
Two-year fixed-rate mortgage
A two-year fixed-rate mortgage is less of a long-term commitment and gives you more flexibility. However, you also have less security. Two-year fixes usually have the lowest interest rates and smallest monthly repayments, but you will need to pay mortgage fees 2.5 times more often than with a five-year fixed-rate mortgage.
Ten-year fixed-rate mortgage
A ten-year fixed-rate mortgage gives you security for much longer than a five-year fixed mortgage, but that comes at a cost. Interest rates are usually higher and if you need to get out of your deal early, you could have to pay a hefty penalty fee.
Discount mortgage
Another alternative is a discount mortgage. This is a mortgage with a variable interest rate set below the lender’s standard variable rate (SVR) – often by 1–2%. This amount is called the discount.
Your mortgage rate and monthly repayments can go up and down, depending on how the bank or building society sets its SVR. For instance, if the Bank of England increases the base rate, mortgage companies typically follow suit – if yours does, your costs will go up.
Tracker mortgage
If you don’t want to choose a fixed-rate deal, you might prefer a variable-rate mortgage, such as a tracker. These follow another index or interest rate, usually the Bank of England base rate. If that rate goes up, your tracker mortgage rate will follow suit, but if it falls, you’ll also pay less.
Tracker mortgages are often cheaper than even the lowest five-year fixed-rate mortgage, but there’s the added risk of the interest rate going up and your mortgage repayments increasing.
If you’re keen to avoid fees, a lifetime tracker mortgage lasts for your entire mortgage term. You should be able to change your deal at any time with no early repayment charges, but these mortgages tend to cost more than shorter-term tracker deals.
Offset mortgage
An offset mortgage allows you to reduce the amount of interest you pay by linking your savings to your home loan. The value of your savings and credit balances is deducted from your mortgage when interest is calculated - meaning lower monthly repayments overall. Usually, you can access your savings, but you won’t earn any interest on them.
The Bank of England has been raising interest rates recently, and they look like they're still on the rise. A longer-term fixed mortgage might help keep your repayments down for longer. ”Nisha Vaidya, Mortgage Editor
Five year fixed rate mortgage FAQs
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Overall representative example
| Based on borrowing | £170,000 over 25 years | The overall cost of comparison | 4.29% APRC Representative |
|---|---|---|---|
| Initial rate | 2.94% fixed for 2 years (24 instalments of £829.10pm) | Subsequent rate (SVR) | 4.53% variable for the remaining 23 years (276 instalments of £932.69pm) |
| Lender fee | £529 | Total amount payable | £277,850.59 |
Explore mortgage guides
Compare Our Best 10 Year Fixed Rate Mortgages May 2022
Compare mortgages with a 10 year fixed interest rate from leading providers. This will ensure your repayments will remain the same for the coming decade which can potentially save you money.
Read More
Compare Our Best 2 Year Fixed Rate Mortgages May 2022
Compare 2 year fixed rate mortgages that will ensure your repayments remain the same. Find the best 2 year fixed rate when using our comparison containing leading providers.
Read More
Compare Variable Rate Mortgages May 2022
Compare variable-rate mortgages, including tracker and discount deals. The interest rates on these mortgages can rise and fall, with some tracking changes in the Bank of England base rate.
Read More
Flexible Mortgages - Compare the Best Rates May 2022
Compare all flexible mortgages that offer flexible repayment options like overpayments and payment holidays. Terms and conditions vary between mortgage deals so check the options before you apply.
Read More
Should you get a fixed, tracker or variable rate mortgage?
Choosing a mortgage with the right type of interest rate can save you money and make sure you get a deal you can afford. Here are the differences between fixed, variable, tracker and capped mortgages.
Read More
Compare Our Best Fixed Rate Mortgage May 2022
Fixed-rate mortgages offer the security of knowing how much you will pay each month for a set period like 2, 3, 5 or 10 years, even if other mortgage rates go up. Compare all fixed mortgages here.
Read MoreWhy compare mortgages with money.co.uk?
Comparing mortgages could help you save money. Our award-winning loan comparison service makes sure you get our best interest rates. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators to help you make life's most important decisions and take control of your money.
Mortgages Comparison
Proud to be award winning
We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.